1530
East Dundee Road, Suite 200 Palatine, Illinois 60074
(847) 934-6100 Fax: (847) 934-6186 info@dspins.com
Directors and officers of publicly held or privately owned corporations have a responsibility to act diligently to avoid conflicts of interest and activities that benefit them personally at the expense of the corporation. They are required to comply with numerous federal and state statutes regulating management and corporate conduct. If they fail to act properly, they may be liable to shareholders, employees, creditors, customers, competitors, regulators and other third parties.
Directors and Officers Legal Liability covers the directors and officers of publicly held or privately owned corporations and the company, to the extent it indemnifies the directors and officers, for defense costs within the policy limits, settlements and judgments from claims by shareholders, employees, creditors, customers, competitors, regulators or other third parties for allegations including, but not limited to the following:
- Negligence
- Unfair trade practices
- Wrongful interference with a contract
- Breach of fiduciary duty, or mismanagement
- Misrepresentations
- Antitrust
- Consumer protection violations
Coverage responds to claims as well as lawsuits, including:
- Written demands for money damages
- Civil lawsuits commenced by the service of a complaint or similar pleading
- Criminal proceedings commenced by a return of an indictment
- Formal administrative or regulatory proceedings commenced by the filing of a notice of charges, formal investigative order, or similar documents