Personal Directors' and Officers' Liability
Recent corporate scandals and regulatory changes brought on by Sarbanes-Oxley have led to a decline in boardroom talent as directors and prospective directors have become increasingly concerned about potential liability.
Personal D&O helps protect the personal assets of directors and officers, even in the event that traditional D&O coverage is denied, unavailable or rescinded due to criminal or fraudulent activities. Personal policies have become increasingly important as traditional D&O coverage has become more difficult to secure, more expensive and includes more restrictions on coverage.
A recent study of 908 board members by Korn/Ferry International and Corporate Board Member showed that:
- Almost half of those surveyed were concerned about their D&O coverage
- 49% said D&O insurance was a very important factor in their decision to join a board
- 48% said they recently turned down a board position because the risk of being sued was too great
HUB experts can discuss Personal D&O and address some of the current issues surrounding coverage for individual directors and officers, such as:
- Protection of individual assets when sued by shareholders and others, including spousal coverage for those spouses or domestic partners named as co-defendants
- Coverage tailored for the needs of individuals - personal, dedicated limits up to $10 million; no aggregate limits to be shared by all directors/officers or the company
- Customization of policy to cover one or any combination of boards the individuals serves on and the right to choose defense counsel
- In many recent cases of fraud, scandal and bankruptcy, financial losses have exceeded the limits of traditional D&O policies, leaving individuals unprotected
Contact a HUB Specialist today info@hubinternational.com