Current issues in DO insurance: a defense lawyer's perspective

With the number of civil and criminal trials involving alleged corporate fraud at an all-time high, and with headlines about outside directors making substantial out-of-pocket contributions to civil settlements of shareholder claims against them, the question of how directors and officers can best protect themselves from personal exposure has never been more important. In light of the increased risk of liability of directors and officers, many public companies are undertaking a thorough review of their D&O insurance policies, and working collaboratively with their brokers and outside counsel to maximize the protections afforded to their directors and officers under those policies. This article covers several of the more devilish issues public companies are facing, and how best to address them in the D&O program.