The John Buck Company – a national property management and development firm – was recently sued in Illinois. Greg Merdinger, a principal of the firm until 2009, alleges mismanagement of a New York condo project that he had a 33% ownership stake in. This mismanagement led to the project having additional capital requirements and then to Merdinger being pushed out of the venture altogether – against his knowledge or will.
While the facts of the case are yet to be judged, the situation highlights a firm’s need to not only carry professional liability insurance, but to consider directors and officers insurance as well. Directors and officers insurance protects the management of a company from allegations of mismanagement or errors in judgement, explains BrokerLiability.com. Contact us today to discuss whether directors and officers insurance is right for your firm.