D&O Liability Insurance Provides Personal Protection in
Today’s Litigious Business Climate
September 1st, 2009 | Corporate-mandated
layoffs and downsizings brought about by the challenging economic
environment have prompted an upswing of employment-related lawsuits,
says national law firm Foley & Lardner LLP. As such personnel
lawsuits become increasingly common, Directors and Officers (D&O)
liability insurance helps to protect businesses and their executives
from attacks on personal resources.
D&O insurance provides protection to a company’s directors,
its officers, and usually the organization itself (publicly traded
companies have securities protection only) for monetary judgments or
settlements for:
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Breach of fiduciary duty (such as using position to gain advantage
as a supplier);
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Failure to exercise due care (agreement to payments or expenditures
without sufficient investigation); and
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Employment-related suits that allege harassment, discrimination
and/or wrongful termination.
The policy also indemnifies the insured organization for legal
expenses.
“D&O insurance may be a toy company’s financial
lifeline if a creditor attempts to seize its director’s personal
assets as a business repayment,” says Benjamin Thrush, vice
president of business development at HUB International Northeast, a TIA
affinity partner. “These D&O insurance products are
emerging and becoming highly specialized to meet the needs of specific
markets … including the toy industry.”
To find out more about D&O insurance, or to receive a free
analysis of your current policy, TIA members are invited to
contact Mr.
Thrush directly at 1.800.706.3023 or to visit HUB's newly updated
website for business insurance offerings that have been
customized for the toy industry.
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