Yes, privately held businesses should have this coverage. It is not just for publicly held companies. Suits don't just come from stockholders. Regulatory agencies, employees, and outside third parties are among those from whom you can expect suits. It could be a competitor claiming deceptive trade practices, a customer claiming refusal to extend credit, or a governmental agency bringing actions for banking law violations, civil-rights issues, or environmental matters. The excessive cost of defending such an action is well worth the premium charge.