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Sarbanes-Oxley News & Developments
Growing Legal Threats Bring Rise In Insurance PremiumsInsurance D&O policy premiums increasing to cover directors from being sued.
> > With some companies facing mutil-billion dollar lawsuits they are beginning to seek greater insurance coverage.
Marsh, the biggest insurance broker in the world, estimated earlier this year the annual cost of D&O insurance coverage to jump by up to 1,000%. It has been said that companies that had a 100% increase this year were lucky, while most are being hit with 300 and 400% increases. However, the broker now estimates the rate of increase has slowed for most companies as more capacity to provide D&O coverage has become available.
More attention is being paid internally and externally by regulators and the directors themselves to issues that could arise as risks. This is good for both the insurers and the insured.
Source: Hoovers
Published:2003-10-01
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