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
- 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
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.