Perspective
Feb. 29, 2012
Tech start-ups, a new liability risk
Tech-based start-ups are paving the way to a potential new area of insurance liability. By Kelley Harvilla of Carroll, Burdick & McDonough LLP
FIRST IN A TWO-PART SERIES
Actions by founders of startup companies are paving the way for derivative suits and investigations by the U.S. Securities and Exchange Commission, which may trigger coverage under those companies' D&O liability insurance policies.
With many startup companies, founders and early employees are at least in part compensated with shares of the company. When these companies go public, the number of shares offered in the ...
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