Monica Minkel Speaks With ThinkAdvisor on Crowdfunding Risks
As more companies become familiar with crowdfunding sites and the adoption of Regulation A+, it’s imperative to understand the new risks that expose companies. In the ThinkAdvisor article, “Disgruntled Investors Are a Big Crowdfunding Risk,” Senior Vice President Monica Minkel explains how Regulation A+ allows private firms to raise money similar to how a large company does through an IPO; however, firm leaders need to protect themselves by purchasing directors and officers (D&O) liability insurance in case rogue investors become unhappy with the organization’s leadership.
Ms. Minkel states, “D&O coverage helps a firm’s leaders fight claims from those disgruntled investors of allegations of mismanagement, misrepresentation and other negligence in the management of the company itself.”
With respect to Cyber Liability exposures, while Reg A+ doesn’t directly impact the need for data, privacy or cyber liability, “all companies have vulnerability,” Ms. Minkel comments. “No matter how good your internal policies and procedures are, all of us have users who occasionally click on an email we shouldn’t, or click on a link or an ad on Facebook that perhaps is problematic, and then we end up with malware of keystroke trackers on our computer. Frankly, us as users, we’re the biggest liability.”