Those directors and officers insurers that take comfort from one year of declining claims frequency might need to beware of the new punch that such suits pack. Indeed, directors and officers themselves should take heed of coverage issues that could have them regretting they ever put themselves in the cross-hairs of angry shareholders.
Even excluding the more than $13 billion in combined settlements relating to class-action lawsuits involving Enron and WorldCom, the average settlement last year was $24.3 million, exceeding the prior high of $23.7 million in 2002, according to NERA Economic Consulting in New York.
These and other trends are making carriers eager to detect potential D&O hot spots.
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