Careful Review Needed For D&O Captives

The current market for commercial directors and officerscoverage has become expensive and limited. This has added fuel tothe fire of captive owners, prompting some to consider covering allor a portion of their D&O exposure through their captive.

I would suggest that captive owner-operators consideringextending coverage for D&O to their companies must carefullyanalyze their coverage needs and exposure to loss before issuingpolicies. A careful review, however, may show the captive to be agood solution.

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