The Case for Private Company D&O Insurance: Why It’s Essential and How To Sell It

One of the most pervasive insurance industry myths is the fallacy that privately-held firms have no need for D&O coverage. This misconception stems largely from the fact that such firms are rarely involved in class action securities litigation. In addition, many risk management practitioners labor under the mistaken notion that the directors and officers of such companies are infrequently sued.

But in fact, private companies do have a securities claim exposure. And contrary to popular belief, they are indeed subject to US securities laws. In reality, privately-held companies are frequent target of lawsuits from: competitors, government agencies, regulators, customers, vendors, and of course, from their own employees and stockholders.

Aug 23, 2011
1:00 p.m. Eastern time

To Purchase

The regular price for non-subscribers is $79 per webinar. However, subscribers and authorized users of IRMI reference services (on either IRMI Online or ReferenceConnect) pay only $9.99 per webinar!

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• Non-subscribers

Webinar-at-a-Glance

Using the expertise developed during his 35 years in the insurance business—including a decade as Editor of D&O MAPS^™ (an IRMI publication that analyzes more than 250 D&O policy forms)—IRMI Senior Research Analyst Bob Bregman, CPCU, RPLU, MLIS, lays out the powerful case for why private companies should purchase D&O coverage.

This webinar will authoritatively debunk the erroneous—and hazardous—delusions about the nature of and need for directors and officers liability insurance by privately-held firms.

Who Should Consider Purchasing

Anyone faced with the responsibilities and challenges of identifying and covering the liability exposures of privately-held companies—whether as an agent/broker, underwriter, or risk manager—is certain to benefit from this webinar.

Agents and brokers will acquire the knowledge to deal effectively with the most common objections to buying private company D&O insurance. Insurance company underwriters can learn how to design the kinds of private company D&O programs that will be easy for their producers to sell. Risk managers will obtain the facts and figures needed to convince their organizations’ senior executives as to the necessity of private company D&O coverage.

Benefits to Your Participation

Attendees will emerge from this Webinar with a better understanding of (1) why D&O coverage is an essential element in the risk management programs of private companies and (2) the grave risks a company assumes by going “bare.” Here are only a handful of the key points this Webinar will discuss:

• Common private company claim scenarios that aren't just hypothetical
• Actual case studies demonstrating the perils of “do it yourself claim management,” a dangerous fact of life for private firms that don’t buy D&O coverage
• Why private companies are, in fact, subject to US securities laws
• The difficulties of attracting quality board members when private company D&O coverage is not in place
• Why minority shareholders are a greater threat to private companies than "common" shareholders are to public firms
• The problems private companies have in securing credit—when they fail to buy D&O insurance
• Why developing a relationship with underwriters before a company goes public, is essential
• What the absence of D&O coverage says about a private company’s management team
• Why the expansive coverage provided by private company D&O forms makes it a bargain—especially compared to public company policies

Continuing Education Credit Information

Attending any three Management Liability Insurance Webinars will satisfy the annual reaccreditation requirement for the MLIS® program. CPCUs attending this webinar will be awarded one (1) CPD (continuing professional development) program point.

This webinar has not been filed for and will not satisfy state insurance CE requirements in any state. It has also not been filed for CLE or CPE credit, but you may be able to self-file after attending the program.