Private Entities
Private Management Liability
Protecting Companies in the Public Markets
Private Company D&O Liability Insurance provides critical protection for your executives and board members when facing allegations of wrongful acts in managing the business. Even privately held companies face significant litigation risk—from investors, employees, customers, regulators, and competitors. Without D&O coverage, both the organization and its leaders may be forced to pay defense costs and settlements out of pocket.
Even a single lawsuit can cost millions in legal fees, distracting leadership and draining capital. D&O coverage protects both the company’s balance sheet and the personal assets of its leadership team—ensuring stability when it’s needed most.
Why Private Companies Need D&O
And Who Needs Coverage
Private companies across all industries—technology, manufacturing, healthcare, real estate, logistics, professional services, and more. Particularly important for companies with: outside investors or PE/VC backing, high cash burn or limited runway, rapid growth or expansion, significant headcount or HR exposure, debt financing or covenant obligations
Even without public shareholders, private companies face costly claims such as:
Investor & Shareholder Allegations
- Misrepresentation of financial condition
- Breach of fiduciary duty
- Mismanagement of company assets
- Disputes between founders, lenders or private equity sponsors
Breach of Duty Related to Financial Decisions
- Insolvency, cash burn, or failure to maintain adequate capitalization
- Creditor lawsuits alleging mismanagement
- Operational decisions leading to financial loss
Regulatory Actions
- Failures in governance controls
- Data privacy violations
- Compliance & reporting violations
D&O Coverage Overview
Coverage Components
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Side A – Individual Protection
Protects directors & officers personally when the company cannot indemnify them
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Side B – Company Reimbursement
Reimburses the organization when it indemnifies executives
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Side C – Entity Coverage
Covers the company itself for claims made directly against the organization
Key Features & Enhancements
A modern Private Company D&O program may include:
- Coverage tailored for private-company exposures
- Defense costs outside or inside limits (customizable)
- Broad definitions of “claim” and “insured person”
- Coverage for pre‑claim investigations and regulatory inquiries
- Flexible retentions and limits structure
- Optional blended tower with EPL/Fiduciary
Additional Products
Comprehensive Public Management Liability Solutions
EPLI, protects businesses from claims by current, former, or prospective employees alleging wrongful employment actions like discrimination, sexual harassment, wrongful termination, retaliation, and failure to promote, covering legal defense costs, settlements, and judgments that standard business policies don't. It's crucial because employees can sue for these issues at little cost to themselves, making EPLI vital for managing significant financial risks.
Employment Practices Liability
Fiduciary Liability Insurance protects businesses and their leaders from claims of mismanagement related to employee benefit plans (like retirement or health plans) by covering legal defense costs and financial losses from alleged breaches of fiduciary duty under laws like ERISA. It covers innocent mistakes, negligent errors, and poor investment advice, unlike a fidelity bond, which covers employee theft, ensuring fiduciaries acting in the best interest of participants aren't personally bankrupted by honest errors.
Fiduciary Liability
Fidelity, or crime, insurance protects businesses from financial losses due to dishonest acts, like theft, fraud, or embezzlement, by employees, volunteers, or third parties with access to funds, essentially acting as a safeguard against internal and sometimes external criminal behavior, often bought as a fidelity bond or commercial crime policy. It covers losses of money, property, and securities from acts such as forgery, computer fraud, funds transfer fraud, and social engineering, compensating the company for damages up to the policy limit.