Insurance Claims And Issues: Directors and Officers Coverage Comes With Big Bills, Major Issues.

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July 02, 2009

Directors and Officers Coverage Comes With Big Bills, Major Issues.

Directors and Officers Liability Insurance Coverage is notoriously "complex". It requires specialized handling and experience. See Saskia Scholtes, "Insurers Face $6Bn Bill for D & O Claims" (Financial Times Online, Tuesday, June 23, 2009).

Coverage disputes include allocating the available Policy Limits between and among the Policyholder and other Insureds. Saskia Scholtes, "Insurers Face $6Bn Bill for Board Protection" (Financial Times Online, Monday, June 22, 2009).

Accordingly, Directors and Officers Insurers have responded by, among other things, raising Premiums and decreasing Coverage. Id.; Suchita Nayar, "More Questions Than Answers in Financial Insurance" (Financial Times Online, Sunday, June 21, 2009).

The increase in Premiums and decrease in Coverage come at a time when the number of Claims against Directors and Officers is increasing and in particular "investor claims related to mismanagement and failure to disclose risks ... are on the rise." Id.

Not a time for the fainthearted, nor the inexperienced.

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Posted by Dennis Wall on July 02, 2009 at 07:00 AM in Directors and Officers (D&O) Coverage | Permalink

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Insurance Claims And Issues