September 1, 1999
Directors’ and Officers’ liability insurance is sold to protect senior management against claims alleging wrongful acts. Many claims involve shareholders’ derivative or class-action lawsuits. Policyholders who bring claims under D&O policies frequently find themselves in coverage disputes because claims handling philosophy often is not as fair and generous as the premium-collecting underwriting approach. Many insurance companies have an unfair advantage because they arefamiliar with the types of issues that arise when a D&O claim is made, but policyholders generally are not. An experienced broker and legal counsel knowledgeable in the D&O area can help policyholders navigate those treacherous waters.