Commercial - Directors and Officers Liability

Description

A director's or officer's exposure to litigation has never been greater than in today's social and public policy environment. Mergers and acquisitions, de-leveraging and corporate restructuring have put a price tag on each decision made by corporate executives.

Claims of securities fraud and mismanagement have been made, both in the United States and abroad, in response to little more than press releases announcing declines in earnings, reserves for future events or products that do not perform in the marketplace as anticipated. Drops in stock price have led to automatic lawsuits with little or no information to support allegations of actual wrongful conduct. Claims by employees, as well as other third parties, such as creditors and regulators, are also increasing in today's litigious environment.

The Commercial Directors and Officers Insurance policy provides coverage for claims brought against directors and officers of a company for actual or alleged breach of duty, neglect, misstatements, errors or omissions. Coverage includes advancement of defense costs granted prior to final disposition of a claim for individuals when the corporation cannot provide such costs. Reimbursement for indemnification of directors and officers for any judgments, settlements and defense costs associated with covered claims when the company has indemnified the insured for loss.