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

United is staying ahead by blazing the trail.

United Agencies Small Business Insurance Division (Contact Us by Email)
525 Cordova St., Ste. 200 // Pasadena, CA 91101-2552 
Phone: 800-378-5554 - or - 626-397-4700 // Fax: 626-683-7682

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