Find peace of mind with management liability coverage from a company that’s rated “A+” (Superior) by A.M. Best.* Take a look at some recent claim examples. Remember, every claim is different and coverage may vary.
*Rating affirmed December 3, 2021

Private Company D&O Coverage: Claims Scenarios

A glass manufacturer's former employee filed suit against the company alleging race discrimination after the company terminated the employee for violating company policy. The company failed to adequately document the reason for the former employee’s termination. The parties mediated the case shortly after suit was filed and agreed to settle the case for $75,000. The company incurred approximately $35,000 in defense costs.


An insurance brokerage laid off 15 employees due to loss of business. Six months later, one of the employees that was laid off filed a Charge of Discrimination against the company with the U.S. Equal Employment Opportunity Commission (EEOC), alleging he was let go on the basis of age discrimination and employment retaliation. The EEOC found in favor of the company, and the former employee chose not to pursue his claim in court. However, the company incurred approximately $25,000 in defense fees.


A health care provider received a demand letter from a former employee alleging race discrimination, retaliation, and various wage and hour violations. The parties attended pre-suit mediation and agreed to settle these allegations for a total of $50,000, of which $35,000 was allocated toward the discrimination and retaliation allegations, and $15,000 was allocated toward the wage and hour allegations. An additional $10,000 was incurred in defense costs.


A lawsuit was brought by a class of service workers against a restaurant franchise alleging the employees were not paid overtime wages in violation of state wage and hour laws. $100,000 was paid in defense of the claim.