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Please press the above EZQT button to be directed to our online EZ Quote for the following coverages:
Liability Insurance (EPLI)
Tanks (UST / AST)
Please Note, you must be an approved eKo Specialty producer with a login ID and password to access the EZQT site. To learn more, please feel free to contact us.
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This information is designed to give you a quick overview of the coverage and how it works. Your policy is the contract that specifically and fully describes your coverage. Please feel free to call 805.373.6968 with any questions.
Directors and Officers Liability Insurance primarily serves to protect the personal assets of individual directors and officers in the event of liability resulting from their management services. Coverage includes the indemnification the corporation may pay on behalf of its management, as well as liability incurred by the corporation itself as a result of the acts of its Directors and Officers.
NOTE: The claims scenarios & summarized are offered only as examples. The examples are not intended to establish any standards of care or to serve as legal advice appropriate for any particular factual situations. Coverage depends on the actual facts of each case and the terms, conditions and exclusions of each individual policy.
1. The stock price of a pharmaceutical company dropped sharply following its announcement that it would miss its financial target because it was taking a charge against earnings due to problems in developing a new drug. Several stockholders instituted a class action suit alleging that the company deceived investors and artificially inflated the price of its common stock by failing to disclose that it would likely be forced to write off the value of the inventory of its generic version of a popular drug because of problems that had arisen in the research and development phase. The drug had not been approved by the FDA and company tests had shown that the drug could not be marketed as a result of these problems.
Outcome - Defense moved to dismiss arguing that the earlier company statements were forward looking and provided warning that investors should not give undue weight to them. Concealment and deception were denied. After the court initially granted a dismissal, but allowed the plaintiffs to amend their complaint, the parties settled for $2.5 million.
2. The plaintiffs brought a securities class action lawsuit alleging that the defendant telecom company misrepresented its financial condition, business activities and prospects, particularly in relation to a subsidiary. This subsidiary was central to the company's effort to recast itself as a cutting-edge internet company and described as a major player in the internet revolution.
Outcome - The plaintiffs claimed that the defendants knew the subsidiary was merely a start-up company with limited customers and prospects. This was allegedly confirmed when the company abandoned plans to spin off the operation and stop funding it. The case settled for $14 million.
All publicly traded companies.