Posted on March 4, 2010.
Is D & O insurance protect a director of trial-related trade secret? Hello -
One of the directors and officers of our company has signed an NDA (nondisclosure) and PIA (Proprietary Invention) agreements with his former employer (he is a director or officer of that company too). It will work on things like our society. It is obviously not planning on using any trade secrets, it was private too :-). However, if either of our company is sued by his former employer for trade secret violations, can
1. D & O insurance to cover legal fees incurred in defending
a trial involving the new director?
2. We do not have D & O coverage at present, this type of coverage should be asked to address all legal issues that may arise with the new director on board?
3. How does D & O insurance - what is the percentage of court costs are covered? How do you usually file a claim?
1. D & O policies are not standardized, so you'll have to check with a particular form. In general, however, the trial covers only policy related to their position as director or officer at your current position. So it will depend wildly on the exact wording of the combination. In all cases, the costs of defense are the only thing covered - any decision will not be covered if she does something illegal on purpose.
2. have your agent exactly what you want. Again, it's not going to cover his previous acts with a previous employer. The point is to meet YOUR business, not to cover it, or to cover her but only with respect to its position with your company.
3. Posted by D & O defense costs are within limits, and you must use the lawyer the insurance company. You have to put the company on notice, even before there is a demand. And on the application, there is a question: Are you aware of anything that might give rise to a claim? And it is a very important question to answer, it would cancel coverage if you are lying.
