Private Company
It’s a common officer's misconception that private company directors and officers do not need this insurance. However, just like their counterparts at publicly owned companies, the directors and offcers of privately held businesses face significant liability exposures. Independent research has shown that a company with a D&O policy can mount a stronger legal defense than a company without a D&O policy and minimize its losses.
A privately held business can be structured as a corporation, limited liability company, partnership, limited liability partnership or sole proprietorship.
Unlike its public company counterpart, coverage in a private company D&O policy is much broader and is generally considered all-risk because the protection extends to the employees and the organization.
Because any defense or settlement money related to a claim will likely come out of the company operating funds, directors and officers of private companies are particularly vulnerable because so often their personal wealth is tied to the company assets.
The traditional D&O policy has evolved into a Management Liability insurance product which originated with the idea of packaging various products for private companies.
The first Management Liability package started with D&O and EPL insurance and expanded over time to include other specialty liability insurance products. In the never ending effort to remain competitive and differentiate product offerings, insurance companies have taken the traditional Management Liability package of liability products and added non-liability products like Crime, KRX and Workplace Harassment.
Eligible Accounts:
No restrictions.
US & International domiciled risks, including:
- Insurance company cancellations or non renewals due to unfavorable claims experience
- Firms facing financial distress and/or bankruptcy
- Initial Public Offerings, Spin-Offs, and other M&A related risks
- Emerging growth (development stage/ start ups)
- Other Special Situations
Coverage:
Negotiating the correct coverage for the desired level of protection can be involved and require various carriers and policy forms.
As a D&O specialist, Hull & Company, Inc. (RFO) develops a variety of protection options for the leaders of public, private, and not-for-profit organizations. We welcome you to contact a staff broker to discuss a particular risk.
- Admitted and non-admitted insurance companies
- Traditional Primary and Excess coverage
- Side A Excess Difference-In-Conditions coverage for preserving personal liability coverage when the company:
- fails or refuses to indemnify a director or officer.
- is sued along with the directors and officers, and the D&O policy limits are eroded or consumed by the policy's entity coverage.
- is financially unable to indemnify its directors and officers against claims made against them.
- is prevented by law (domestic or international) from indemnifying its directors and officers for the particular claim at issue.
Other D&O Coverages:
- Personal Director’s Liability
- With evolving legislation and stricter corporate governance standards, directors face greater personal liability than ever before. This policy is designed to protect their personal assets beyond protection afforded them by a traditional directors and officers (D&O) liability insurance policy.
- Outside Directorship Liability Insurance (ODL)
- When companies encourage their employees to contribute their time and talents to community activities, including service as directors, officers, or other leaders of nonprofit and for-profit organizations, they can also create complicated liability issues and unintended losses for the company and the individuals who serve.
As separate coverage, the policy provides a separate and distinct limit of liability independent of a company's directors and officers (D&O) liability limit.
Applications:
New Business Application- Stand alone policy
New Business Application-Package policy (for companies with up to 250 employees)
(includes Directors and Officers Liability, Employment Practices Liability, Fiduciary Liability, Fidelity Bond, Kidnap Ranson & Extortion, Security & Privacy Liability, Employed Lawyers Professional Liability, Miscellaneous Professional Liability, Workplace Violence Expense)
New Business Application- Package policy (for companies with more than 250 employees)
(includes Directors and Officers Liability, Employment Practices Liability, Fiduciary Liability, Fidelity Bond, Kidnap Ranson & Extortion, Security & Privacy Liability, Employed Lawyers Professional Liability, Miscellaneous Professional Liability, Workplace Violence Expense)
Side A Excess Difference-In-Conditions Application (All states except NY)
Side A Excess Difference-In-Conditions Application (NY only)
Personal Director’s Liability Application
Outside Directorship Liability Insurance Application
Articles
"Taking Risks with Risk" – Highlights from Chubb 2010 Private Company Risk Survey
On-Line Quoting:
ERisk/Scottsdale
The ERisk/Scottsdale link will enable you to quote onlin through ERisk Services. The quote will be sent to us and then forwarded to you. Please contact us if you would like your own link that will give you instant quotes with your company's logo.
The online application is designed as a package for private companies and includes the coverage sections shown below. The applicant only needs to complete the desired Coverage Sections along with the basic application, section I through VI.
Each coverage section can be purchased on a standalone basis or included in combination with any of the other coverages offered.
Private Company D&O/EPL/Fiduciary/Crime
This product targets private companies with up to 500 employees and less than $250,000,000 in assets. Click on Target Accounts for a list of risks that are NOT eligible for this product.
Directors & Officers and Company Coverage Section:
This product targets private companies with up to 500 employees and less than $250,000,000 in assets. Click on Target Accounts for a list of risks that are NOT eligible for this product.
Employment Practices Coverage Section:
This product targets private companies with up to 500 employees and less than $250,000,000 in assets. Click on Target Accounts for a list of risks that are NOT eligible for this product.
Fiduciary Coverage Section Information:
This product targets private companies with up to $50 million in plan assets. Union and Multi-employer plans are NOT eligible for this product.
Crime Coverage Section:
This product targets private companies with up to $5 million in revenues.
Privacy & Security Coverage Section Information:
This product targets private companies with up to $50,000,000 in revenues. Click on Target Accounts for a list of risks that are NOT eligible for this product
Note: Technology, Media & Professional Services Coverage Section and Miscellaneous Professional Services Coverage Section are the other modules in the package policy which are not available online.
Other Coverages:
All or most other coverages that comprise the Hull & Company, Inc. (RFO) practice are appropriate. Contact a staff broker to discuss a particular account.
All insurance product and/or coverage descriptions are informational only. It is neither an offer to sell nor a solicitation to purchase any particular insurance product. Coverage may not be available in all jurisdictions.