If you are considering forgoing the D & O insurance for your business, you should know that you're getting a pretty big risk. First, the directors and officers insurance? D & O insurance protects your organization and your board of directors, as well as investors and venture capitalists in the event of any claims against your company. What that statement, you May Ask? Well, the following four examples will show you exactly why you should ensure that D & O policy for your company, regardless of size or industry.
The non-entity EPL
Let's say you agreed to help form and work for the company as chief financial officer. Now bringing suit against the company, because you collect if you were terminated without just cause. Furthermore, you are stating that the company was prevented by finding alternative employment, claiming that the non-compete agreement between you and the company. In this type of application, and will sue the company and its directors and officers for breach of contract and unfair and deceptive trade practices.
In this example, let's say that you are bringing a lawsuit against the company management (Its CEO, CFO, COO, etc.) because they charge you that officers conspired to use their services in order to supply, install and repair of the sound or computer equipment, knowing full well that the company is insolvent and is planning to file for Chapter 11 anyway.
Inventor of disputes
Let's say you invented medical devices and that your ex-partner started a new company using innovative technology without permission. The technology is the subject of a patent application which are listed as the sole inventor of medical devices. Your former partner should submit an application and want to be listed as a co-inventor. When he refused, he withdrew the request, and then started his business and filed for his patent list themselves as the sole co-inventor. In this case, and will bring a lawsuit against the company and its directors and officers (your ex) for the misappropriated technology and use these technologies to establish new businesses.
Competitor disputes
In the end, you're suing a competitor alleging that a former employee who now works for the competitor, is engaged in the unauthorized use of confidential and personal information. Also, you are stating that the employee in other acts of unfair competition. In this case, you may sue the company and its directors and officers for misappropriation of trade secrets, breach of computer fraud and abuse law, for unlawful access to stored information and unfair competition.
These are just some examples of why your company needs to directors and officers insurance. You never know when one of the above situations can strike your business, and do not want to be on the other end of expensive claims if you do not have to defend slučaj.Pametan move to secure D & O policy so that you, your company, your Board of Directors , employees, volunteers and others are well protected in the event of any such claims truly against your organization for any reason.
What if you can not find a director and officer insurance you want?
I know how difficult it can be to try to find the exact risk areas of your business that need coverage, but if you want to find out the real risk areas and really get the insurance to reduce risk as far as possible. here.