DIRECTORS & OFFICERS LIABILITY INSURANCE
- Protects the personal assets of a company's directors and officers from potential unlimited liability;
- Protects the company's assets;
- Provides reimbursement to the organization to indemnify directors and officers for their losses; and
- Helps the company monitor and provide defense costs associated with responding to lawsuits and investigations.
Why Private Companies and Not-for-Profit Organizations Should Consider Buying D&O Liability Coverage:
- The cost of defending corporate lawsuits may exceed the net worth of most private companies;
- Judgments and settlements 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 other third parties;
- Business decisions made by directors and officers can quickly impact the finances and operations of a company;
- Directors and Officers 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 or EPL coverage.
Sources of D&O and EPLI Claims:
- From Shareholders, Investors, Partners and Members
- Mergers / 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)
- Prospective company acquisition
- Copyright / patent infringement
- Company defamation
- Business interference - Tax issues
- Competitor disputes
- Regulatory / other government issues
- Employees, contractors and co-workers for employment practice disputes
Products offered by SUM:
Not-for-Profit D&O including entity liability cover and employment practices liability. Cover available as one aggregate, or separate limits for D&O and EPLI sections respectively.
Offers cover for charities and charitable organisations, Educational Organisations, Environmental Associations, Governmental Organisations and Agencies, Public Art Organisations, Sports & Leisure Organisations, Strata Plans and Residential Associations, and Trade Associations.
Not covered under Not-for-Profit product: Trade Unions, Medical or Healthcare providers (although we will cover those providing health or medical-related advice).
Management Liability with a modular set of covers including: D&O, Corporate Liability, Employment Practices Liability, Pension Fund/Employee Benefits Fund Trustee Liability, and Employee Fidelity/Crime. Cover available as one aggregate limit or separate limits for D&O and EPLI sections respectively. Fidelity cover is offered as a sublimit of the D&O sections.
Sectors covered include Agriculture and Fishing, Biotechnology, Chemical & Pharmaceutical, Manufacturing, Media, Medical/Healthcare, Mining, Oil & Gas, Professional Services, Retail, Software Development, Internet, Telecomms, Transportation, Utilities, Travel & Leisure.
Sectors not covered: Tobacco, Arms/Weapons/Munitions and related industries.