DIRECTORS

Jorgensen & Company can procure comprehensive Partnership or Directors' and Officers' liability insurance for your  Executive Team and your firm's Officers. 

​

When it comes to insurance and risk transfer, professional firms don’t face the same type of contractual obligations and responsibility to shareholders that public corporations do. These factors combined sometimes result in professional firms miscalculating their ultimate business exposures, especially in the matter of directors’ and officers’ (D&O) liability.

 

In reality, professional firms are just as susceptible to D&O litigation as large, publicly-traded corporations, but the causes of that litigation may be slightly different. Public companies are much more likely to get embroiled in an SEC investigation or a large data breach claim, whereas professional firms might see more mismanagement and misrepresentation claims arising from employees, customers or competitors. Regardless of causation, one thing is certain, litigation costs can be detrimental and destructive for professional firms.

​

The types of claims against professional firms could be:

​

1. Lawsuits by partners for mismanagement of the firm which might be 1. malpractice claims exceeding limits or 2. a lawsuit not being covered, which leads to bankruptcy of a firm.

2. Failure to disclosure material facts resulting in termination of insurance

3. Failure to meet the obligations of a purchase agreement

4. Suits from creditors for failure to make payments under a loan or mortgage

5. Failure to make payments under a purchase agreement

6. Vendor lawsuits for tortious interference with a contact

7. Lease or lessor fraud and misrepresentation

8. Unfair or Deceptive Trade Practices, Infringement of Intellectual Property

9. Failure to make partner

10. Misappropriation of Trade Secrets

11. Regulatory Action & Fraud

12. Minority Shareholders (partner) Lawsuit

​

Contact Alex Maggard on (725) 231 7961 or Rickard Jorgensen at (725) 231 7959. , or a member of the management liability insurance team, for more details.