C.L. Hollis Insurance Agency is your expert connection at designing insurance coverage for the Directors & Officers. We have many years of experience in providing tailored insurance coverage for many industries. In making sure your insurance coverage are complete, cost-effective, and convenient, we’ve left nothing to chance and Directors & Officers coverage are one of those chances that many overlook.
D&O insurance covers directors and officers of public, private, and not-for-profit corporations for loss (damages and defense costs) arising out of their status or conduct as directors or officers. Common claims allege breach of duty, security law violations, and unfair competition. We can offer coverage on both a primary and an excess basis.
Directors and officers of companies make difficult and challenging decisions every day. Sometimes those decisions can end up costing them personally. The leaders of any organization, public or private, can face personal liability for the decisions they make. They can be sued based upon their actions while running the company, or they can be named in a lawsuit simply because they are directors and officers.
Management and Professional Liability Claim Scenarios
- › The Facts: ABC Corp. is a company which distributes medical supplies. It needed to raise capital and told an interested investor that it was close to securing contracts with several large hospitals. ABC Corp. also met with the investor on several occasions to discuss ABC’s financial condition and plans for future expansion. As a result, the investor agreed to provide funding. When the contracts were not finalized and expansion plans were not fulfilled, ABC experienced a significant profit loss for three consecutive quarters. The investor filed a lawsuit against ABC Corp. and its Board of Directors alleging that they made several misrepresentations to induce the investor to provide funding.
- › Results: The matter went to trial and the investor was awarded $4 million.
Officer accused of misappropriation of trade secrets
- › The Facts: XYZ Corp. is a computer software company. They recently recruited a new Chief Technology Officer from a competitor given his great reputation in the industry. Shortly after he started with XYZ, his former employer filed a lawsuit against him alleging that he was using trade secrets and confidential information to assist XYZ Corp. In addition, the former employer sued XYZ Corp. alleging tortuous interference with contract alleging that XYZ interfered with the employment contract it had with its former Chief Technology Officer.
- › Results: Defense costs totaled $200,000 given the need for computer experts to analyze software and hard drives. In the end, the parties settled after XYZ agreed not to use certain systems/programs.
C.L. Hollis Insurance Agency can handle any of your insurance issues.