Insights

For the first time in history, many U.S. insurers today are willing to afford coverage under various types of insurance policies for punitive and exemplary damages under certain circumstances. This coverage is typically referenced in the definition of “Loss” with... Read More

In the past, directors and officers generally recognized that their company should purchase D&O insurance, but they had little interest in the details. Besides the total amount of coverage purchased and the size of the deductible, little else was disclosed... Read More

In response to recent criticisms, federal law enforcement authorities are now investigating with greater frequency and vigor potential criminal charges against directors and officers in a variety of contexts. Most notably, on September 9, 2015, deputy attorney general Sally Quillian... Read More

Since the insurance crisis of the mid-1980s, companies of all sizes have given increased attention to the appropriateness of alternative methods to finance director and officer (“D&O”) liability risks. D&O risk financing alternatives create unique legal issues not applicable to... Read More

Because directors generally oversee the performance of senior officers, the directors have far less involvement in company performance, disclosures and problems than officers. As a result, directors typically have far less liability exposure than officers and in some situations, are... Read More

Historically, there was considerable doubt whether a corporation could financially protect its directors and officers from personal liability. Some early authority indicated that corporate expenditures for purpose of D&O indemnification and insurance were ultra vires because such payments were not... Read More