Technology and Cyber Risks

Directors & Officers Coverage

Directors and Officers (D&O) Coverage is an important coverage for organizations involved in the technology or Internet sector whether they are public or private. Additionally, D&O coverage presents some unique challenges due to the rate of change and public market volatility for technology companies.

Technology companies that are anticipating a public offering of their stock should establish a track record with D&O underwriters in order to help smooth the way when the initial public offering (IPO) is ready. And after an IPO, technology company stocks typically face greater volatility, leading to a greater risk of shareholder suits. Click here for more information on public company D&O.

The D&O market for public technology companies is undergoing significant change as underwriters reassess their approaches. The past few years have seen intense competition and deteriorating loss experience in this segment. A significant number of Internet companies have completed their IPOs only to see their prospects diminish and their stocks decline precipitously. In some cases these companies have not been able to achieve profitability or secure additional financing, and have subsequently gone out of business.

All of these influences have led to increased shareholder suits, increased employment related claims and greater D&O losses. While this has led to tightened underwriting criteria by D&O underwriters and to significant D&O premium increases, the turmoil has also created a great opportunity to compete for new accounts, and to market existing accounts.

Mercator Risk Services provides D&O coverage for a wide range of public and private technology companies, including companies about to complete an IPO. We have a wide range of D&O markets in order to find the best alternative for your public or private D&O client. Please let us know your client's needs and we will provide you with information and assistance with your particular situation or account, and professional liability coverage. For assistance with a particular account or coverage situation please contact us at info@mercatorpro.com or see contact information on this website.

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