D&O Insurance: Responding to Increased Board Accountability
Shaping Policies to Protect Directors and Officers Amid Heightened Government Enforcement and Shareholder Lawsuits
Recording of a 90-minute CLE webinar with Q&A
- Evaluating D&O coverage
- Liability areas that implicate coverage
- Coverage offered by D&O policy
- Dedicated Side A coverage — protects D&O personally, separate from company’s D&O policy
- Excess policies — are they structured to avoid claims issues?
- Current trends in D&O claims and litigation
- Shareholder derivative actions
- Securities class action litigation
- Personal contributions from D&Os
- What is the impact of such trends?
- Key terms to negotiate
- Claim definition — what is covered and what should be covered
- Rescission and severability terms
- Conduct exclusions
- Strategies/best practices
- Directors actively participate in placement of D&O insurance
- Pay attention to the details
- When negotiating D&O insurance coverage, you can benefit from getting an independent second opinion (often an attorney)
- When completing the application and answer a question concerning D&Os’ knowledge or information of error or omission the might give rise to a claim under the proposed policy, rephrase the question.
- Watch out for coverage traps
The panel reviewed these and other key questions:
- What are the primary risk factors for directors and officers?
- What are the current trends in D&O claims and litigation?
- What are the best practices to negotiate the best coverage for a company's directors & officers?
- What are the critical factors for counsel to consider in evaluating D&O coverage?
Kimberly M. Melvin
She represents insurers on coverage issues related to professional liability coverage, including directors and... | Read More
She represents insurers on coverage issues related to professional liability coverage, including directors and officers, financial institution, mutual fund and investment advisor liability policies. She represents professional liability insurers in connection with corporate scandals involving directors & officers and financial institutions, including Enron-related litigation and investigations.Close
Kevin M. LaCroix
OakBridge Insurance Services
He has been involved in directors’ and officers’ liability insurance issues for over 25 years. He is also... | Read More
He has been involved in directors’ and officers’ liability insurance issues for over 25 years. He is also the author of the Internet weblog, The D&O Diary. Before joining OakBridge, he was a coverage attorney at a law firm and served as president of Genesis Professional Liability Managers, a D&O underwriter and part of the Berkshire Hathaway Group.Close
Mary E. McCutcheon
Farella Braun + Martel
She chairs the firm's Insurance Department and advises companies and individual directors regarding issues involved in... | Read More
She chairs the firm's Insurance Department and advises companies and individual directors regarding issues involved in placement of and claims under directors' and officers' liability insurance. She also represents corporations, public entities and individuals in coverage issues arising out of construction and exposures and litigates rescission and bad-faith actions.
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