“Why Private Companies Shouldn’t Overlook the Benefits of Directors and Officers Liability Insurance,” an article by Akin Gump litigation partner Douglas Rappaport, counsel Jacqueline Yecies and associate Tim Shepherd, with co-authors, has been published by Marsh.
The article focuses on the importance of director and officers (D&O) liability insurance, which, the authors note, is often underestimated by senior officials at private companies. They write that, although private companies do not have the shareholder base of public companies, private companies do have owners, investors and other stakeholders, “and their directors and officers could be targeted in a variety of lawsuits based on management actions.”
The authors note that private company D&O claims are now occurring almost as often as claims against public companies and state that “it is critical for privately held organizations to closely consider the purchase of D&O insurance to protect both individual directors and officers as well as the company itself.”
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