A Managing Director of a medium sized electrical contracting company left to become the CEO of a competing company (the Insured). After 3 months, his previous employer sued him for allegedly stealing trade secrets, confidential business information and employees.
Proceedings were initiated against the Managing Director in the Federal Court for damages. The Insured incurred over $200,000 in legal costs to defend the claim. The parties ultimately settled the dispute for $210,000 with the former Managing Director agreeing to not disclose any confidential information and to not hire former employees.