Director’s and Officers Liability Coverage Part Five
You should also be aware that your insurer may not cover you for securities fraud. A very common reason to buy D&O insurance is for protection against securities-law violations. Policies provide specific coverage for these claims while at the same time exclude claims related to fraud. One way to soften this situation is to have clause in the policy that specifies that the fraud exclusion will not take effect until there has been final adjudication... [Read More...]
Director’s and Officers Liability Coverage Part Four
Outside the US directorship may not be covered. D&O policies may provide international coverage but the fine print reveals that it is only “to the extent possible.” This is very vague. Some countries including India, China, Russia and Brazil require that companies maintain local D&O policies. It is therefore important to purchase additional D&O coverage outside the US. Read More →
Director’s and Officers Liability Coverage Part Three
To continue our discussion of D & O liability coverage, let’s look at an aspect of claims denial. The insurance carrier may deny coverage for reasons unrelated to the claim against you. Insurers can rescind a D&O policy – return the premium and pretend as though there had never been coverage – if they conclude at a later time that the application contained false or misleading information. Seems reasonable. Insurers today require... [Read More...]