Russell Bond & Co., Inc. December 2017  
 
Privately Held Company
Corporate Directors & Officers
 

Did you know:

  • Directors and officers can be held personally liable for decisions made while on the board of a private company.
  • Suits can be filed by employees, shareholders, investors, competitors, suppliers, customers and lenders. 
  • The average cost to defend against a D&O claim is a staggering $267,000!
  • In the past five years, 39% of private companies with 25 or more employees have experienced a D&O suit.
 
The only protection between personal assets and a claim
may be a
Directors & Officers policy.
 
Coverage Features:  
  • Risk management services - free human resources consultation helpline service with unlimited calls and no time limits plus an online HR resource center
  • Fair Labor Standards Act (FLSA) - $100,000 sub-limit for defense costs and loss (available in most jurisdictions if Employment Practices Liability is purchased)
  • Separate limits of liability for Directors & Officers Liability, Employment Practices Liability and Fiduciary coverage sections
  • Defense cost outside the limit of liability on EPL claims (for firms with up to 200 employees
  • Defense and settlement provision ("hammer clause") softened to consent to settle a claim cover 75 percent of defense costs and loss after insured's final refusal to consent to settle a claim
  • Spousal and domestic partner liability coverage
  • Fiduciary - broad definition of claim, settlement, program notice coverage and a separate limit up to $2,000,000
  • Additional limit available for non-indemnifiable acts on Directors & Offices
Corporate Directors & Officers
Image courtesy of franky242 at FreeDigitalPhotos.net>
  
Claims examples (type of claim):
Business Partner
A company chose not to renew a contract with its supplier due to differences of opinion over product charges.  In response, the company allegedly used information gained in an audit of the supplier to start up its own competing venture which then supplied both their company and others in the industry with competing products.  The supplier alleged defamation / business disparagement, negligence, fraud and civil conspiracy among other allegations. 
OUTCOME: Settlement and defense approached $1,000,000.


Third Party Disability Discrimination
A hotel guest alleges disability discrimination in violation of the Americans with Disabilities Act because the guest room, bathroom and front desk were not ADA compliant. 
OUTCOME: Settled for $27,000 and the hotel agreed to make the necessary changes to become ADA compliant.


Mishandling of Funds
A particular state department of labor advises a company that it may commence a lawsuit against it for the funds that it allegedly lost from its 401(k) plan.  the company reportedly transferred the funds from a 401(k) plan managed by one company to another. 
OUTCOME: The situation settled without a lawsuit being brought but the defense costs exceeded $25,000.
Call us for more information:  800-333-7226
 
Tonya Hollederer Ed Chadwick Jackie Oddo
Tonya Hollederer, ext. 133
Team Leader
thollederer@RussellBond.com
Ed Chadwick, ext. 261
echadwick@RussellBond.com
Jackie Oddo, ext. 161
joddo@RussellBond.com
   
Click here
for application
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A Wholesale Insurance Broker Unlike Any Other TM
 
____________________________________________________________________________
67 Years
1950 - 2017
866 Ellicott Square Bldg.  |  295 Main Street  |  Buffalo  |  NY  |  14203
1670 Whitehorse - Hamilton Square Road  |  Hamilton  |  NJ  |  08690
Hampton Ponds Plaza # 12 |  1029 North Road  |  Westfield  |  MA  |  01085
800.333.7226  |  www.RussellBond.com  |  Fax: 800.677.6779
Trusted since 1950