This is especially true of high technology companies, where both risks and investor expectations are high. Suits filed against Directors and Officers typically allege wrongful or unfair business practices, unfair employment practices, discrimination, or failure to provide timely, accurate information to creditors and investors.
Liability can represent a financial burden.
However, in order to attract the best-qualified managerial talent, a comprehensive program of insurance and risk management is imperative. Selection of a broker to represent you with the limited number of markets that write Directors and Officers liability for technology companies requires close scrutiny of a specialized area of expertise. Included within this proposal should be a comparison of coverage, exclusions, insuring agreements, endorsements, and general policy conditions with all companies quoted. Determining whether the broker is utilizing an intermediary to assist with the coverage placement, and identification of the intermediary's qualifications. Submitting a complete underwriting application a minimum of 60 days in advance of the proposed effective date.