D&O Insurance

Directors & Officers Liability (D&O) is an important element for film producers, celebrities and high profile individuals to protect their personal assets. If you make decisions that could have an impact on a third-party, your net worth could be at stake if pulled into a lawsuit. Without coverage the outcome could be “hero to zero” in an instant.

D&O is designed to help protect the personal assets of a company’s directors and officers, as well as the financial well-being of the company itself. As leaders of the company, directors and officers can be held personally liable for their management decisions. Shareholders, employees, investors, customers, competitors, creditors, vendors, suppliers and even the government can sue a company and its board. Common allegations against directors and officers include breach of duty of care, breach of duty of loyalty, neglect, misrepresentations, defamation, omissions, misstatements and errors. Corporations are limited-liability structures for shareholders—but not for boards or officers.

Why would an individual, private company or shell corporation that does not have shareholders need D&O Liability? Many production companies, celebrities and high profile individuals who work through their companies, or serve on outside boards make decisions that could impact a third party.

The cost of defending these types of lawsuits may exceed the net worth of most private companies and individuals—judgments can be financially crippling. You need to protect your personal assets and the company’s assets. You are wagering your net worth with every claim. D&O Liability makes sure firms can and will indemnify the directors & officers. It can keep them from losing their homes, cars, college funds and more.

Why are some of the sources of D&O claims?

  • SHAREHOLDERS, INVESTORS, PARTNERS AND MEMBERS
    Merger/acquisitions; financial performance; executive compensation, stocks or other offerings, conflict of interest, bankruptcy, inadequate/inaccurate disclosure, financial reporting.
  • CUSTOMERS, CLIENTS AND CONSUMER GROUPS
    Refusal of credit, debt collection, deceptive trade practices, contract dispute, restraint of trade, dishonesty, cost or quality of product/service, lender liability.
  • OTHER THIRD-PARTY CLAIMS AGAINST DIRECTORS AND OFFICERS
    Anti-trust, copyright/patent infringement, business interference, competitor disputes, prospective company acquisition, company defamation, tax issues, regulatory/other government issues.

Download this PDF and contact your HUB Entertainment team to find out more about D&O Liability and what will best protect you and your assets in the event of a D&O Claim.