PUBLISHED ON: June 1, 1999
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B
&O Insurance policies
may provide significant
protection against Year
2000 Bug related claims.
Policyholders may find,
however, that many D&O
insurance companies will attempt to deny coverage
for certain claims for no other reason than that the
claims are related to the Year 2000 Bug. Indeed, a
paper prepared for one insurance company
concluded that corporate insurance policies that
“are silent on the [Year 2000 Bug] issue will rarely
(and poorly) serve the best interests of the Board of
Directors.” Below is a discussion on some key
coverage issues which may arise when policyholders
file Year 2000 Bug related claims under
their D&O insurance policies.