August 1, 2002
Directors’ and Officers’ (“D&O”) liability insurance is on the tip of every officer’s and director’s tongue these days. This is especially true in our “post-Enron” world. Ever since the efforts by insurance companies to rescind Enron’s insurance policies once the house began to crumble, policyholders no doubt have faced a challenging environment to
purchase D&O insurance. More money to buy less insurance coverage has become the rule too often. The fact of the matter is, however, that dependable D&O insurance was getting harder to secure even before the fallout from Enron reared its head. Some recent huge claims and turbulent capital markets had D&O insurance companies running for the hills and away from coverage.