Businesses and organizations today are facing an increase in Directors & Officers Liability (D&O) claims, with the biggest jump in claims brought about by regulatory actions and whistleblower bounties. To properly insure a business, Directors and Officers Liability insurance is available to protect an insured’s executives’ personal assets from losses arising out of claims for “wrongful acts” allegedly committed by them in their capacity as directors and officers of the organization. The policy also provides for reimbursement to the company with respect to loss for which the company has indemnified its directors and officers for their incurred liability.
Directors and officers of companies and organizations may be sued for many alleged wrongdoings. Following are some examples of wrongful acts that may give rise to litigation:
- Improper disbursement or expenditure of corporate assets
- Negligence in the performance of duties while acting in their capacity as directors and officers
- Alleged breach of contractual obligations
- Misstatement of financial reports, or improper or misleading advertising due to negligence
- Misrepresentation of capabilities in contract negotiations
- Breach of fiduciary duty by failing to regularly attend board of directors meetings, failure to perform supervisory functions or to maintain adequate internal control
- Actions which exceed the authority granted by the charter and by-laws
- Certain types of discrimination, failure to follow prudent hiring practices, or breach of employment contract
- Failure to stop an action which results in damage to the company or organization, or failure to defend the company or organization against invalid claims
- Improper disclosure of significant information prior to disclosure
- Disputes involving proxies or the election of directors
- Anti-competitive trade practices
A General Liability policy does not provide D&O Liability insurance coverage therefore it’s essential that when reviewing your insurance program, you discuss your exposures in this area and how best to protect you, your company and executives. The professionals at Roanoke Trade will review your specific needs with you.
All Your Business Insurance Needs Are Covered with Roanoke Trade
Roanoke Trade knows the transportation and logistics industry. That’s what we do. We have the expertise, experience and products to protect your operation, employees and financial assets along with the goods in your care and custody for the clients you serve. Find out how we can provide you with the insurance programs you need to be properly protected. Please contact us at 1-800-ROANOKE or complete the Contact form located above.