Can the D&O policy be amended to provide coverage for named positions?

We receive this question quite a bit. The standard Directors and Officers contract provides protection only for corporate directors and officers. However there are other, potentially non-officer positions that may be subject to being named in a suit such as General Counsel or Director of Investor Relations. These, and other positions can be named on the policy and coverage provided for these otherwise exposed employees.

As always, if you have any questions please don’t hesitate to contact your Socius representative.

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What is Severability of the Application?

The Director and Officers application asks a warranty question, seeking to uncover any known circumstances that may lead to a claim under the policy. If the signer is aware of any such circumstances and does not disclose them, he or she can void coverage for all Directors and Officers in the process, even those unaware of the circumstance. Severability results in voided coverage for the signer only, and not for any “unknowing” Directors and Officers.

As always, if you have any questions please don’t hesitate to contact your Socius representative.

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Employer Lawsuits on the Rise

With two office locations in Florida, we felt we should report on a trend that is being seen. More employees are suing their employers. According to the U.S. Department of Labor reports the number of lawsuits related to the Fair Labor Standards Act  increased by 35 percent in the past three years.

That’s enough to make any employer shake in their insurance policy boots. Is your organization fully covered with Directors, Officers and Corporate Liability and Employment Practices Liability? Contact a Socius agent to have your policies reviewed and avoid an unnecessary risks.

For the full article on rising lawsuits, click here.