Private Directors & Officers Liability

Protecting the company's assets and key management.

A look at the numbers

1 in 4

Companies reported experiencing a Directors & Officers loss in the last three years*

33%

Of small businesses mistakenly believe they don't need coverage because they’re privately held*

$400K

Average reported loss for private company Directors & Officers claims*

*Chubb (2018) Top Risks for Private Companies in the U.S.

Built for small businesses

Thousands of small businesses use Counterpart’s insurance product offerings and risk management services to manage some of their most complicated risks

Technology

Example

Technology

State:

Illinois

Limit:

$2,000,000

Retention:

$5,000

Premium:

$15,192

Restaurant & Food Services

Example

Restaurant & Food Services

State:

New Jersey

Limit:

$2,000,000

Retention:

$10,000

Premium:

$9,948

Consulting

Example

Consulting

State:

Washington

Limit:

$1,000,000

Retention:

$10,000

Premium:

$3,015

Construction

Example

Construction

State:

Texas

Limit:

$2,000,000

Retention:

$10,000

Premium:

$9,462

Manufacturing

Example

Manufacturing

State:

Arizona

Limit:

$1,000,000

Retention:

$5,000

Premium:

$4,885

Hospitality

Example

Hospitality

State:

Florida

Limit:

$1,000,000

Retention:

$5,000

Premium:

$1,870

Medical Practitioners & Outpatient Care

Example

Medical Practitioners & Outpatient Care

State:

New York

Limit:

$1,000,000

Retention:

$10,000

Premium:

$4,149

We cover 300 + more industries

Across all 50 states

State:

Limit:

Retention:

Premium:

What is covered?

Wrongful Act

Any actual or alleged breach of duty, neglect, error, act, omission, or misstatement

Crisis Event Coverage

Costs incurred to respond to a Crisis Event

Extradition Costs

Defense of any extradition requests

Securityholder Derivative Demand Investigation Coverage

Costs incurred by investigations involving shareholder derivative claims

Coverage for Pre-Claim Inquiry available

Protection against investigative costs that arise before an actual investigation

Securities offerings

Private offerings exempt from public registration

+ Much more

And dozens of other coverages that are designed to help business grow with less risk

Download our full coverage & appetite guide

Claims Examples

Regulatory Violations

Cost: $50,000-$100,000

Time to resolve:

6-12 months

Example

The SEC accused a public benefit organization and its management of conducting fraudulent and unregistered crowdfunding offerings totaling nearly $2 million and of failing to disclose facts about one of the founder’s prior criminal convictions. The SEC charged the PBO and the individual defendants with violations of federal securities laws and sought disgorgement of the investment proceeds plus prejudgment interest, and other financial penalties. The SEC also asked the court to permanently bar the individual defendants from serving as officers and directors of any other company.

Breach of Fiduciary Duty

Cost: $100,000+

Time to resolve:

1-2 years

Example

A family-owned metal fabrication company and its management were sued by three minority shareholders. Plaintiffs claimed that the company’s management did not inform them of the company’s finances for years. According to the complaint, the defendants had failed to publish board and committee meeting minutes, only provided sporadic and incomplete financial updates, and had misused corporate funds for their own personal benefit. Plaintiffs asserted that these actions prevented them from fully understanding the company’s financial health and economic prospects. The complaint asserted claims for breaches of fiduciary duty and unjust enrichment. Plaintiffs asked the court to award them monetary damages and to remove the individual defendants from their management positions at the company.

Trade Secrets / Unfair Competition

Cost: $250,000+

Time to resolve:

2+ years

Example

A software company was sued by one of its competitors, who accused the software company of soliciting the competitor’s employees to steal confidential and proprietary technology. The plaintiff claimed these actions resulted in misappropriation and destruction of intellectual property, conversion of confidential and proprietary information, and interference with its current and prospective clients. The complaint included causes of action under federal and state trade secrets laws as well as common-law tort claims for unjust enrichment, civil conspiracy, and civil theft. The plaintiff asked the court to grant injunctive and declaratory relief, as well as damages, attorneys’ fees, interest, and costs.

Regulatory Violations

Cost: $50,000-$100,000

Time to resolve:

6-12 months

Example

The SEC accused a public benefit organization and its management of conducting fraudulent and unregistered crowdfunding offerings totaling nearly $2 million and of failing to disclose facts about one of the founder’s prior criminal convictions. The SEC charged the PBO and the individual defendants with violations of federal securities laws and sought disgorgement of the investment proceeds plus prejudgment interest, and other financial penalties. The SEC also asked the court to permanently bar the individual defendants from serving as officers and directors of any other company.

Breach of Fiduciary Duty

Cost: $100,000+

Time to resolve:

1-2 years

Example

A family-owned metal fabrication company and its management were sued by three minority shareholders. Plaintiffs claimed that the company’s management did not inform them of the company’s finances for years. According to the complaint, the defendants had failed to publish board and committee meeting minutes, only provided sporadic and incomplete financial updates, and had misused corporate funds for their own personal benefit. Plaintiffs asserted that these actions prevented them from fully understanding the company’s financial health and economic prospects. The complaint asserted claims for breaches of fiduciary duty and unjust enrichment. Plaintiffs asked the court to award them monetary damages and to remove the individual defendants from their management positions at the company.

Trade Secrets / Unfair Competition

Cost: $250,000+

Time to resolve:

2+ years

Example

A software company was sued by one of its competitors, who accused the software company of soliciting the competitor’s employees to steal confidential and proprietary technology. The plaintiff claimed these actions resulted in misappropriation and destruction of intellectual property, conversion of confidential and proprietary information, and interference with its current and prospective clients. The complaint included causes of action under federal and state trade secrets laws as well as common-law tort claims for unjust enrichment, civil conspiracy, and civil theft. The plaintiff asked the court to grant injunctive and declaratory relief, as well as damages, attorneys’ fees, interest, and costs.

Regulatory Violations

Cost: $50,000-$100,000

Time to resolve:

6-12 months

Example

The SEC accused a public benefit organization and its management of conducting fraudulent and unregistered crowdfunding offerings totaling nearly $2 million and of failing to disclose facts about one of the founder’s prior criminal convictions. The SEC charged the PBO and the individual defendants with violations of federal securities laws and sought disgorgement of the investment proceeds plus prejudgment interest, and other financial penalties. The SEC also asked the court to permanently bar the individual defendants from serving as officers and directors of any other company.

Each claim is unique and requires review of your policy terms and conditions to determine whether the claim is covered under your unique policy terms and conditions.

How we’re different

Others

Modular Forms

Quote multiple limits, retentions, and coverage options across all coverages

Others

Admitted & Surplus

More coverage options, from standard coverage to more unique, complex risks

Others

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AM Best rating of A XV (Excellent)*

Underwritten by industry leaders with one of the strongest credit ratings from AM Best

Others

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Risk assessment

Generate custom risk assessments with proprietary insights into the exposures your clients may face

Others

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Multi-channel support

Get a quote in minutes, any where, and on any device via email, digital application, or API

Others

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Underwriter on-call

Get support from underwriters with over >120 years of collective experience

Others

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Counterpart Risk Engineer, Satwik Mysore

We’re behind you

After graduating with an actuarial science degree, Satwik has spent most of his career at Travelers, where he built one of the largest and most profitable management & professional liability books by forming strong broker relationships.

Satwik Mysore

Risk Engineer Manager

Other products

Employment Practices

Protect against employment-related lawsuits.

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Fiduciary

Protect the company and plan administrators against damages and defense costs.

Two small business owners with insurance standing on the manufacturing floor of their business.

Crime

Protect against financial crime, employee theft, and emerging fraud risks.

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Small business owner with insurance confidently works at a table

Underwritten by the world’s leading insurance providers

Counterpart’s products are unwritten by Aspen Specialty Insurance Company (AM Best Rating of A XV*), Evanston Insurance Company, a Markel® Company (AM Best Rating of A XV*), and Westfield Specialty® (AM Best Rating of A XV*).