Insights

The scope of coverage afforded under D&O and other types of policies is determined based not only on the terms and conditions of the policy, but also on the law applicable to the policy. Brokers and insureds correctly devote a... Read More

The term "allocation" refers to the process of determining the amount of defense costs, settlements or judgments which is properly attributable or "allocated" to covered Claims against covered persons, on the one hand, and uninsured claims against uninsured persons, on... Read More

Every wave of business failures or scandals leaves a legacy of lessons learned. For example, the dot.com debacle in the late 1990s taught investors not to ignore lack of profitability or business fundamentals and to avoid irrational exuberance. The Enron... Read More

This report analyzes the primary differences in management liability and insurance issues between these alternative entity forms and a traditional corporation.Read More Read More

It is commonly recognized that the size of settlements in securities class actions against directors and officers has increased dramatically in the post-Enron environment. Equally troubling, but less publicized, is the similar increase in the frequency of proceedings against directors... Read More

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