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Sarbanes-Oxley News & Developments
Directors and Officers (D&O) Insurance - All D&O Policies are not Created Equal!Your best bet is to take a proactive approach, with the help of legal counsel.
> > New corporate regulatory requirements could lead to an increase in securities related lawsuits. Checking into your D&O coverage after a claim has been filed may put at risk your hard earned assets. Your best bet is to take a proactive approach, with the help of legal counsel, and determine what coverage you have (and do not have) in your policy. This should include an understanding of the indemnity obligations running from the company to its directors and officers, with attention given to the preservation of insurance rights during bankruptcy.
D&O policies are intended to provide coverage for lawsuits or claims alleging the commission of wrongful acts in the scope of a director or officer professional duties. However, coverage can vary by policy and insurer. Some of the problematic issues include; 1) Defense coverage may be inadequate 2)
Source: GTLaw - Alert
Published:2003-02-17
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