August 11, 2020

Volume X, Number 224

6 Questions Senior Management and Board Members Ask Corporate Counsel About D&O Insurance

Shareholder class and derivative litigation can be scary for senior officers and directors whose expertise and focus lie in making the business profitable, not in defending against securities lawsuits. They understandably assume that because they’ve always paid the premiums for their directors and officers (D&O) liability insurance, these claims will be covered.

This program will address the top six questions we hear from directors and officers that corporate counsel must be prepared to answer:

  1. What does our D&O policy cover and exclude, and what’s the risk that the insurance company can get out of paying this claim?

  2. We’ve been sued for securities fraud, yet we’ve heard that fraud and intentional conduct aren’t covered by insurance. Can the insurance company get out of paying the pending claim?

  3. What if we want to settle the pending case and not risk a trial, but the insurance company wants to roll the dice and refuses to settle? What are our options?

  4. What happens if, unknown to us, someone made a mistake or even lied in the application for our D&O policy? Will we still be covered?

  5. What happens when the SEC calls and asks for our cooperation in an informal investigation, and we have to hire counsel to produce documents and prepare witnesses to protect the company? Do we have coverage for the cost of this?

  6. Are there any gaps in coverage that we should tell our broker to plug at the next policy renewal?

The goal of this presentation is to help corporate counsel and senior executives become more knowledgeable about D&O insurance.

Event Location: 

Upcoming Legal Education Events

Wednesday, August 12, 2020