D&O Entity Cover Had Its Downsides

With shareholder class actions against corporations and their boards rising unabated, the corporate scandals of the past year have made the personal assets of directors and officers even more of a target for securities litigation. In many cases, innocent directors and officers are seeing their personal assets jeopardized by corporate crimes they did not commit.

As a result, the directors and officers liability insurance policy is more important than ever to the directors and officers of Corporate America. Accordingly, it is critical for all involved in the development of a D&O insurance program– risk managers, chief financial officers, brokers, carriers, and the directors and officers themselves–to comprehend the scope of D&O coverage and to obtain coverage that protects and defends the personal assets of directors and officers.

To do this, they need to ensure that the policy provides appropriate incentives for all concerned to work together towards a common end in defending a claim. To achieve this, however, the industry must first address the presence of entity coverage in the D&O policy.

Want to continue reading?
Become a Free
PropertyCasualty360 Digital Reader.


  • All PropertyCasualty360.com news coverage, best practices, and in-depth analysis.
  • Educational webcasts, resources from industry leaders, and informative newsletters.
  • Other award-winning websites including BenefitsPRO.com and ThinkAdvisor.com.

Already have an account?


© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.



Join PropertyCasualty360

Don’t miss crucial news and insights you need to make informed decisions for your P&C insurance business. Join PropertyCasualty360.com now!

  • Unlimited access to PropertyCasualty360.com - your roadmap to thriving in a disrupted environment
  • Access to other award-winning ALM websites including BenefitsPRO.com, ThinkAdvisor.com and Law.com
  • Exclusive discounts on PropertyCasualty360, National Underwriter, Claims and ALM events

Already have an account? Sign In Now
Join PropertyCasualty360

Copyright © 2024 ALM Global, LLC. All Rights Reserved.