It's fast moving, dynamic, less-bureaucratic, with management closely involved in day-to-day business operations, and important decisions made on the spot. But the entrepreneurial environment has a dangerous downside as well. Because they are so closely involved in daily operations--and often the ones making key decisions--small company owners and managers are extremely vulnerable to lawsuits initiated by employees and others. When a costly D&O liability claim does occur, these executives' personal assets, as well as the company's financial viability, may be put on the line.

The greatest threats come from employees alleging discrimination, retaliation, wrongful termination and harassment. Nearly 80,000 of these and other employment practices claims were filed with the Equal Employment Opportunity Commission in 2000. It's not unusual for private companies to be sued by shareholders, customers, competitors, and government bodies as well.

Customer profile:

• Designed for insureds with 1,000 or less employees and less than $100,000,000 in revenues

Benefits:

• The form meets small to mid-sized clients needs by being competitively priced and offering low retentions, without compromising coverage that is important to mid-sized private companies

Features may include:

• Broad D&O Coverage, including coverage for the entity and employees
• Unique Securities Coverage: -- Blanket private placement coverage --Coverage for those Initial Public Offerings which are exempted pursuant to Section 3(b) of the Securities Act of 1933 -- Guaranteed IPO Quote
• Contract Exclusion applies only to the Company
• EPLI coverage includes a broad definition of Wrongful Act---wrongful termination, sexual harassment, discrimination, employment-related retaliation, misrepresentation, libel and slander, and others
• Defense Cost Coverage for Employment Contract Claims
• Optional coverage for punitive, exemplary and multiple damages
• Flexible defense provisions - optional duty to defend