Directors and Officers Insurance
Directors and officers are often the targets of nasty claims, which cost them and their company time, stress, anxiety and money. Directors and officers insurance protects these people and their personal assets.
The CEO of a company with 30 employees left to become the CEO of a rival company. Three years later the Managing Director of the former company sued the aforementioned CEO and the rival company for stealing trade secrets and confidential business information. The claim was vigorously defended and it was eventually settled on the basis that each party walks away and bears their own costs. The legal costs for the rival company in defending the claim were $110,000. Unfortunately for this CEO and rival company, they did not have the right insurance in place to cover this cost.