Reasons for D & O Coverage

Many private companies think that D&O exposure is only related to companies with publically traded stock. Shareholders are not the only potential plaintiffs. A private company can also be sued by employees, investors, customers, competitors, vendors, suppliers and/or creditors.

The leaders of any organization, even private companies, can face personal liability for the decisions they make. They can be sued based on their actions while running the company, or they can be named in a lawsuit simply because they are directors and officers.

A D&O policy from CNA will insure directors and officers for non-indemnified loss. If the company does not have such coverage and is unable to pay the defense costs associated with a D&O claim, the directors and officers may be responsible. The directors and officers have to pay with their own funds -- jeopardizing their net worth -- just to prove their innoncence.

Most companies are not in the business of defending, settling and litigating D&O claims, but CNA is. Defending a D&O claim is costly both in time and money. For your business, time is money. Let CNA's expert claim staff do what they do best, which allows you to focus on what you do best...running your business.

If you are the owner of a private company, you have worked very hard to build something that provides you with personal satisfaction, success and most importantly financial security. Tillinghast-Towers Perrin reported that the cost of defending D&O litigation can range from $100,000 to $2,000,000.