Recent litigation is putting directors and officers on the spot for environmental risks allegedly posed by the companies they oversee. Risk managers should make certain that the terms and conditions of their environmental D&O coverage are adequate to protect top executives and board directors from such shareholder litigation, experts say.
According to William G. Passanannte, co-chair of Anderson Kill's insurance recovery group:
“Where I see it come up most often is with regard to acquisition or divestiture activity”
“Directors can get second-guessed” about environmental liabilities, Mr. Passannante said. “The question is whether what you're talking about, really, is an environmental claim or is it really a claim related to a mistake in the valuation of the corporate assets.”
To read the full story: Environmental responsibility is latest front in D&O litigation