Directors and Officers coverage protects businesses, board members and officers from lawsuits that could arise from their business decisions. Robust insurance also helps to attract talented executives as it provides them with protection of their personal assets. Other coverages can be written along with the D&O to include Employment Practices, Fiduciary, Crime, Kidnap Ransom Extortion and Workplace Violence. Here are some claims examples.
Get Help With Insurance Inc can help you place your D&O risks including private companies, new start-ups and non-profit organizations. We look forward to helping your clients gain much-needed peace of mind.
Here are two examples of claims:
One
Three years after the sale of a business, the buyer alleged that they were induced into purchasing the company based on misrepresentations in the seller’s information which masked the true fi nancial condition of the company. The buyer alleged that the seller knew that a substantial amount of their inventory was defective but continued the sale despite this knowledge. The buyer feels that the seller should have known this defective inventory would lead to unanticipated litigation that the buyer has experienced. Settlement and defense of the claim exceeded $4,000,000. A plaintiff fi led a complaint against their competitor alleging that a former employee, whom is now working for the competition, engaged in unauthorized use of confi dential and proprietary information. They allege that the former employee committed acts of unfair competition that resulted in irreparable and immediate injury. The allegation involved claims of misappropriation of trade secrets and violation of the Computer Fraud and Abuse Act. Plaintiff sought attachment of computer server of their competitor along with related fi les and documents. They demanded injunctive relief, compensatory damages, punitive damages and attorneys’ fess and costs. Total defense and settlement of the claim exceeded $400,000.
Two
Directors & Officers Claims Examples A private company decided at the end of a contract period with their parts supplier, to not renew the contract. They felt that the supplier was overcharging and taking advantage of them. An audit of the supplier as part of their business relationship had given the private company information about the supplier’s operations which lead them to begin obtaining their own parts without the use of the supplier. Subsequently, they decided to also supply others in the industry with parts in competition with their previous supplier. The former supplier sued them alleging business disparagement, fraud and civil conspiracy. Settlement and defense of the case exceeded $1,000,000. A wealthy benefactor agreed to donate over two million dollars to a local non-profi t organization. In light of the large donation, the organization agreed to put up an engraving to recognize the claimant for the generous gift. Later, the organization decided to not hang the plaque in the agreed upon area. The benefactor brought suit and the court ruled that the non-profi t must put up the plaque in the agreed upon location. Defense costs for this matter exceeded $150,000.
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Get Help With Insurance Inc
223 S Water Street, Suite B
Henderson, NV 89015
(702) 541-0882, work
(888) 258-0208, fax
help@gethelpwithinsurance.net