Last year 26% of private companies experienced a Directors & Officers Liability claim. Let’s make sure you are prepared.
No doubt, being hit with a D&O claim creates frustration for any business owner. It leads to time spent managing the claim versus a focus on running your business. The statistic above is a harsh reality of the increasingly litigious and regulatory environment your business operates within today. What adds to the complexity, and eventual business owner frustration, is when D&O liability insurance is not there to respond.
This is exactly the situation many private companies find themselves in, spending $387,000 on average for D&O claims because they didn’t think the coverage was necessary or because the organization was unable to identify a claim and have it reported under the policy. It’s an expensive lesson to learn!
What’s the rationale for neglecting to purchase D&O insurance?
Many wrongly believe that they don’t need the product because they are privately held, family-run, or have not experienced a claim in the past. But there are D&O-related exposures that universally affect all organizations. Regulatory bodies, customers, vendors, suppliers, competitors and shareholders are just a few examples
The fact is, more than 1 in 4 private companies experienced a D&O loss in the last 3 years with the maximum reported loss being a whopping $17M. The financial impact is just the tip of iceberg; consider loss of productivity, a negative impact on company culture and a damaged brand reputation, something that can take a long time to build back, if at all.
Join me for a discussion about private company D&O exposures.
My colleague Larry Conrath and I will share our case studies serving the private sector, explain how to avoid traps and debunk myths about D&O liability including:
- Why private companies make the mistake of thinking D&O insurance doesn’t apply to their organization
- How private company D&O insurance not only protects the company but also leadership’s personal assets
- How private company D&O insurance is an important factor in attracting and retaining top talent
We’ll be live January 25, 2017 @ 3pm EST to bust myths about D&O liability. Register now.
*2016 Private Company Risk Survey, CHUBB Limited, Chadwick Martin Bailey