If you are part of the c-suite (CEO, CFO, etc. ), you know that a slowing economy inevitably comes to tough decisions. Whether cutting back, bankruptcy, mergers and / or acquisitions, such decisions can come at great personal expense not only his reputation, but also financially.
What administrators and leaders of liability insurance?
A liability insurance payable to the directors and officers of a company as reimbursement for loss or advancement of defense costs if they suffer loss as a result of a lawsuit brought against them for alleged unlawful acts in their capacity as directors and / or officers.
Did you know that as a director or officer in an organization as your own personal property can be used if there is no compensation for Directors c / o officers?
The key to weathering downturns is having a strong contingency plan. This involves having the infrastructure in place to facilitate layoffs and terminations in conjunction with provincial labor laws
Following the prudent practice in employment practices, others claims that may arise during an economic downturn are :. Bankruptcy, security and fiduciary claims
Protect - Protect - Protect :.
- Consult a legal opinion
- does not decrease the limits of the policy
- full disclosure when layoffs
Here are some questions to consider :?
- Can I be sued for financial exaggerate my shareholders
- How my role as a member of the board and an economic slowdown affects my personal property?
- is my insurance protect me if an employee sues for being laid off?
When a company is unable to indemnify their directors and officers, "SIDE A" policy is used. The blog next week will explain why buying a policy "SIDE A difference in conditions" for administrators and individual agents is now more than ever.
Any questions about D & O? Ask one of our insurance experts.
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