Insure your business against claims for negligent acts and errors or omissions allegedly committed by current or former directors or officers of your corporation.
Claims arise from a number of sources, including:
- Dissident stockholders
- Clients
- Competitors
- Employees
- Government regulatory agencies
The nature of the claim might involve allegations that the directors or officers have been responsible for:
- Loss of value of company stock from poor administration, poor judgment or inadequate supervision
- Improper use of corporate funds, such as allowing excessive compensation to officers
- Using their positions for personal gain
- Failure to treat creditors equally and fairly
- Anti-trust violations
- Unwise investment of corporate funds
- Misstatement of the corporation's financial position, or failure to disclose important facts to stockholders
- Improper payment of dividends
- Exceeding authority granted by the charter or by-laws