Charters, manifestos, and SPI's purpose, and forum-widening

Bruce Perens bruce at
Mon May 14 19:48:42 UTC 2007

Jimmy Kaplowitz wrote:
> Certainly Directors & Officers insurance is one kind
> of insurance that is purchased by a company for specific individuals,
> and I don't see what's unique about that other than a different risk
> profile that makes it a reasonably common purchase.
It costs a lot more to insure a number of people for their full net 
worth than it costs to insure a corporation that doesn't own anything. 
Insurance cost is at least somewhat proportional to the amount you are 
insuring. Covering the DDs as a group gets into the tens of Millions 
pretty quickly. Thus, shifting the burden of liability from the 
individual to the corporation is the essential first step in protecting 
that individual without breaking the bank.

As an aside, if you have not taken a look at available D&O policies, 
there are in general a lot of caveats, exceptions, and loopholes to 
protect the insurer.



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