Private Companies

Private Companies D&O Insurance Program from Preferred Concepts LLC

Preferred Concepts LLC, through Mercator Risk Services, offers a specialized Directors & Officers (D&O) Liability insurance solution for privately held companies. This program is designed to help independent agents and brokers place D&O coverage for their clients facing complex management liability exposures. With access to a variety of markets, Mercator is able to tailor coverage that meets the distinct needs of private companies across numerous industries.

Ideal Accounts and Appetite

This program targets small to mid-sized privately held corporations that meet the following criteria:

• Fewer than 500 employees
• Less than $250 million in assets
• No prior claims
• No plans to file for a public offering within the next 12 months
• Not operating in the financial services sector

Mercator also considers hard-to-place accounts, including those with prior claims or financial difficulties. If you have a distressed or unusual risk, the team can help craft a solution that fits your client's needs.

Coverage Highlights and Advantages

D&O liability insurance protects executives and board members from lawsuits alleging wrongful acts in their capacity as company leaders. Many privately held companies underestimate this risk until a claim is brought against them. Common sources of D&O claims include:

• Shareholder disputes – 20%
• Employment-related claims – 15%
• Breach of contract – 30%
• Business/product-related issues – 15%
• Unfair competition/trade secrets – 10%

Mercator’s D&O program offers up to $5 million in limits and includes broad coverage with options to add Employment Practices Liability (EPL), Fiduciary Liability, and other relevant protections. Coverage can also be extended to include exposures related to technology, media, and professional services on select accounts.

Key benefits include:

• Broad, flexible D&O coverage
• Optional add-ons for EPL, Fiduciary, and more
• Competitive pricing
• Fast quote turnaround

Underwriting Notes

While standard submissions are preferred, Mercator is open to reviewing more challenging risks. Accounts with prior claims, financial impairments, or other complexities will be considered on a case-by-case basis. Their experienced underwriters will work with you to explore viable coverage options.

Territories and Availability

This program is available to licensed agents and brokers in all 50 states and Washington D.C., including AL, AK, AZ, AR, CA, CO, CT, DE, FL, GA, HI, ID, IL, IN, IA, KS, KY, LA, ME, MD, MA, MI, MN, MS, MO, MT, NE, NV, NH, NJ, NM, NY, NC, ND, OH, OK, OR, PA, RI, SC, SD, TN, TX, UT, VT, VA, WA, WV, WI, and WY.

The program is written on a non-admitted basis through various carriers, allowing for greater flexibility in underwriting and coverage customization.

Why Work With Preferred Concepts LLC

Preferred Concepts LLC, in partnership with Mercator Risk Services, delivers expert wholesale brokerage services with a focus on specialty lines like D&O. Their access to multiple carriers, strong underwriting expertise, and responsive service make them a reliable partner for placing private company management liability risks. Whether you're working with a straightforward private company or a more complex, hard-to-place account, Preferred Concepts can help you find a market that fits.

To learn more or to discuss a submission, contact (860) 527-9717 or email [email protected]. You can also visit www.mercatorpro.com for applications and additional product details.

Frequently Asked Questions

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