October 1, 2002
A number of recent developments have made the purchase of D&O liability insurance even more difficult. First, more than ever before,D&O liability insurance companies will challenge demands for coverage related to large losses. Second, “entity coverage,” which has become wildly popular in the United States, has a dark side for Directors and Officers. Third, one potential solution promoted by various groups, “Financial Statement Insurance,” is a good idea which will not work. Finally, difficult times like these make the claims-handling philosophy of your D&O liability insurance company, a difficult quality to evaluate, even more important.