Articles and Publications

D&O Insurance

“I am in the process of changing my company from a sole proprietorship to a corporation, mainly because of the fact that I am giving ownership shares to my key employees. Being a corporation requires that we have a Board of Directors. Myself, and other potential Directors are curious about our liability exposure that comes with that role, and whether there is protection (i.e., insurance) for such?”

Unfortunately we live in an increasingly litigious environment. Every corporate director and officer, whether their company is large or small, is a potential target for litigation. Company executives may be personally liable for the decisions they make. The cost of just defending a lawsuit is extremely high. Combine that with damages and expenses, and you have a potentially devastating situation.

Lawsuits can be brought against directors and officers by shareholders, employees, and even by customers, suppliers, competitors, and regulatory agencies. They can allege: mismanagement of business; self-dealing and conflicts of interest; failure to deliver services; failure to disclose information; disclosure of materially false or misleading information; violation of state and federal laws; unfair trade practices, franchise disputes; etc.

Fortunately, insurance coverage is available to respond to these risks. Directors & Officers Liability Insurance can provide funds for the defense and settlement of these lawsuits.

Please note that insurance coverage alone can’t fully protect corporate executives against their D&O liability exposures. Quality insurers also offer loss prevention guidance in addition to insurance coverage.

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Anchor Agency, Inc.
Pioneer Plaza
652 Albany Shaker Road
Albany, NY 12211

Phone - 518.730.3200
Fax - 518.730.3199
Email -
The Hartford