What is Directors & Officers Professional Liability Insurance (D&O)?
Directors and Officers are fiduciaries of the corporation they serve. Accordingly, they carry a host of legal obligations that can result in loss exposures for corporate wrongdoing. They can be held personally and financially liable for actual or alleged breach of duty while managing the affairs of a corporation and ensuring its compliance with laws and regulations.
Whether it’s for an entity, CEO, CFO, vice president, or shareholder-elected director, CMI consults with companies to protect them from costly lawsuits. We work with a range of corporate structures including:
Limited Liability Companies
Why it’s smart to have Directors & Officers Professional Liability Insurance
Shareholders for a company that markets fitness, health and beauty products filed a suit against the company. They claimed that the company, its officers and directors made misrepresentations in a proxy filed with the SEC, upon which shareholders relied in determining to vote in favor of a merger. Shareholders were unwilling to settle for less than $5 million. Although the company was found not guilty, defense costs totaled $2.5 million.