Welcome to United Agencies: Directors and Officers (D&O) FAQs
We have prepared this informational section to help you understand the various issues surrounding D&O liability. This section is comprised of the following page links:
| D&O Insurance FAQs | Sample D&O Claims | Non-Profit D&O Considerations | Duties of Directors and Officers | D&O Terms and Definitions | D&O Application Form |
What is D&O Liability Coverage?
D&O is written to:
- Protect the personal assets of a company's directors and officers
- Protect the company's assets
- Provide reimbursement to the organization to indemnify D&O's for their losses and
- Help the company monitor and provide defense costs associated with responding to lawsuits and investigations.
Why Private Companies Should Consider Buying D&O Liability Coverage?
Cost of defending corporate lawsuits may exceed the net worth of most private companies:
- Judgments can be financially crippling
- Corporate indemnification may not be available
- Adverse shareholders and other potential claimants may exist
- Bad business decisions are likely to be more visible due to small business environment thus attracting the attention of shareholders, regulators and others
- Business decisions made by D&O's can quickly impact the finances and operations of a company
- D&O's work in demanding environments as they cover more corporate duties
- Unique conflicts of interest may exist due to complexity of responsibilities and
- Companies will have a difficult time attracting qualified individuals to their Boards without D&O coverage.
Current Business Trends Point to Purchasing D&O Coverage:
Protection Against Economic uncertainty:
- Access to adequate capital
- Keeping up with technology
- Internet growth
- Protecting intellectual property assets
- Retaining qualified workers.
What are the Sources of D&O Claims?
| Shareholders, Investors, Partners and Members: | |
| Merger / Acquisitions | Conflict of interest |
| Financial performance | Bankruptcy |
| Executive compensation | Inadequate / Inaccurate disclosure |
| Stock or other offerings | Financial reporting |
| Customers, clients and consumer groups: | |
| Extension, refusal of credit | Restraint of trade |
| Debt collection | Dishonesty |
| Deceptive trade practices | Cost, quality of product or service |
| Contract dispute | Lender liability |
| Other third party claims against Directors and Officers (including competitors) | |
| Anti-trust | Prospective company acquisition |
| Copyright / patent infringement | Company defamation |
| Business interference | Tax issues |
| Competitor disputes | Regulatory / other government issues |
| D&O Insurance FAQs | Sample D&O Claims | Non-Profit D&O Considerations | Duties of Directors and Officers | D&O Terms and Definitions | D&O Application Form |
Should you have any questions, please feel free to give us a call or CLICK HERE to get a quote for Private Company D & O Coverage
