Today's leaders of every size and every type of company run the risk of being sued for decisions they make every day. Any private company can be sued by its employees, shareholders, investors, customers, competitors, creditors, vendors and/or suppliers.
When these suits hit, it can mean financial disaster. According to Tillinghast-Towers Perrin, the defense costs can be significant, ranging from $10,000 to nearly $2,000,000*. In some cases, without the proper D&O insurance, individual directors and officers could have to pay for defense costs out of their own personal assets.
*Data excerpted from Tillinghast-Towers Perrin, Directors & Officers Liability Survey, 2005