NewMark and Directors & Officers Liability Insurance

Directors and officers liability insurance (D&O) is designed to cover the directors and officers who oversee the company’s affairs. This policy is needed because these individuals can be charged with liability for an ever-increasing number of actions and inactions. By definition, a company can include non-profit organizations, charitable trusts, and civic associations. The one common thread tying them together is the concept of a “duty” owed by an officer or director to its constituents such as shareholders, employees and the corporation itself.


D&O liability came about as a solution to such matters as breaches of fiduciary duty and good faith that were beyond the common law courts. This helps explain why the legal structures governing the conduct of these individuals are often vague and subject to differing interpretations.


It may also explain why the area is such a fertile field for litigators. Anyone suffering any sort of damages, from a sharp drop in the share price or a wrongful termination, can scrutinize corporate activity and then accuse the manager of having breached a corporate duty. NewMark understands how D&O works and can provide insurance products to deal with the difficulties surrounding such claims.


D&O policy is an integral part of your liability coverage  

Many consider D&O coverage as an integral part of any corporation’s liability package. Originally it was a way to protect the officers and directors, as well as the corporate entity, and was mostly concerned with business litigation. Now, however, there are many different types of issues involved, like public policy concerns, fraud, unfair competition, employment practices, and exposure of trade secrets.


D&O policies don’t cover criminal activities; they are concerned exclusively with civil remedies, mainly damages awarded. Therefore the only criteria are in determining whether a director or an officer has breached one of his basic duties to the extent that the aggrieved party can recover.


All business ventures involve a certain amount of risk


Private company risks are less concerned with securities violations. Their main exposure is to employees, but any company that employs one or more individuals or deals with customers, clients, competitors, the government, or other third parties has a D&O exposure, making the need for directors and officers liability insurance all the more prevalent. Let NewMark provide you with the coverage that you need.

Temp Employee Status Concerns and Staff Insurance

A leasing company sends a temporary employee to a client company for a term of work that will continue up until such a time as the temp performs the required assignments. The client company provides all of the work materials, training, and supervision of the temp employee. It controls the temp’s hours and days of work. Each week, the temp fills out a time sheet provided by the leasing company, which is countersigned by a supervisor at the client company. The leasing company issues a paycheck to any temporary employee they send out on assignment for each week a time sheet is submitted. They also deduct all of the appropriate federal and state withholding’s and pay the necessary payroll taxes.

One day, however, while at the work site, another employee negligently creates a hazardous situation resulting in the temporary employee being injured on the job. The staffing company, if deemed responsible, will need to have staff insurance that provides workers comp claims, but who is ultimately responsible for the care of the injured temp worker?

Is the temp an independent contractor or employee?

The first step is to determine whether the temp was actually a permanent employee of the client company, the leasing company, or both. The IRS evaluates whether a worker is an independent contractor or an employee because they are more likely to receive payroll taxes and withholding’s from employers than income taxes from independent contractors.
In general, what these criteria will focus on is whether the employer has control over the worker and the method of completing the job. For instance, an employer (as opposed to a company contracting with an independent contractor) is more likely to provide the work materials and tools necessary to do the job, set the hours and days of work, and monitor the person’s ongoing work.

The determination of who is the employer will ultimately be a fact-based decision by the court assigned to hear the case. The leasing company, the client company, or both can end up being considered the employer, which serves as a perfect example of why staff insurance is required for when situations arise that result in a workers comp claim.