Replies to post #224515 on CMKM Diamonds Inc. (fka CMKX)

[puppydotcom]

Just the fact UC named Kevin "interim CEO" instead of consultant or IR manager or sheep doctor is pure keep the sheep happy bullchit.

Kevin's azzz is now on the line for any lawsuits/SEC charges coming to visit CMKX/UC. I wonder if they have any insurance to cover lawsuits like -
Errors & Omissions Insurance?

Errors and Omissions Insurance protects your company from claims if your client holds you responsible for errors, or the failure of your work to perform as promised in your contract.

Coverage includes legal defense costs - no matter how baseless the allegations. Errors and Omissions Insurance will pay for any resulting judgments against you, including court costs, up to the coverage limits on your policy.

Errors & Omissions Insurance coverage extends to both W2 employees and 1099 subcontractors, and can be worldwide in scope.
generally recommend Errors & Omissions Insurance be at the foundation of every company's insurance portfolio. Usually it is wise to purchase the coverage prior to product launch, or when you have customers.It can be required by investors, particularly VC's.




Why do I need Errors and Omissions Insurance?
. Professional Liability - Errors & Omissions Insurance - coverage is not provided by a Commercial General Liability policy. Commercial General Liability does NOT provide coverage for errors, contract performance disputes or any other Professional Liability issues. Companies who have General Liability without Professional Liability - Errors and Omissions Insurance -coverage are taking a serious risk. It's like a doctor practicing medicine without Malpractice Insurance.

Mistakes Happen. Every company messes up at some point. You Can't Be Everywhere. Sometimes you can't personally handle every job. Errors and Omissions coverage insures not only your mistakes, but also the mistakes of the employees and Independent Contractors you hire.


and or


D & O insurance -

Directors & Officers/Employment Practices Liability is continuously evolving. This evolution is directly related to the insurance and business communities' heightened awareness of exposure to Directors and Officers and Employment Practices Liability related claims.

Approximately 50% of all Directors and Officers Liability claims are tied to Employment Practices Liability claims. Employees that were once silent about workplace harassment and discrimination are now speaking out and taking action against their employers.
Plant closings, layoffs, and mergers and acquisitions are commonplace events that are providing fertile ground for multi-million dollar class action claims.
The case of Enron in late 2001, coupled with an already large downturn in the economy, has further affected the pricing for Directors and Officers liability.
Over the past six to nine months, underwriters have become increasingly vocal regarding their inability to maintain profitability given current pricing levels. Directors and Officers underwriters are reporting increased claims activity. Greater claim activity, the overall deterioration in market conditions as a result of lost investment income, and the World Trade Center catastrophe have combined to create a climate that translates to reductions in available coverage and higher premiums.

D&O Carriers Want More
It has long been recognized that directors and officers are the people who can make or break a company. However, after the collapse of companies such as Enron, Global Crossing and K-Mart, D&O underwriters are taking a closer look at board members. As a result, corporations should be prepared to provide additional information about their company directors.

The company's charter and the workings of the audit committee also will be scrutinized, as will its insider trading policies. Underwriters are attempting to determine the independence of the audit committee, as well as possible conflicts of interest with board members. Underwriters probably will request documentation on these company policies.

Companies also should be prepared to begin their renewal process far earlier than in past years. What might have taken 30 days to complete in prior years could take 90 to 120 days now because of lengthy information requests. Plan for a time-consuming renewal process and let us assist you in this effort.