Consultants who help firms through bankruptcy may be surprised to learn that their client's directors and officers liability insurance coverage excludes them, according to a brokerage's experts.
During a Web seminar yesterday, professionals from Chicago-based Aon described some coverage pitfalls that unwary consultants, lawyers, lenders and accountants fall into when they're moving companies through bankruptcy processes.
David Payne, senior vice president of Aon Financial Services Group, said such turnaround professionals may be diligent enough to ask whether they are named insureds under a client D&O policy. That's often not enough, however, because "every D&O policy is going to have an E&O [errors and omissions] exclusion," he said, explaining that a lot of services provided by bankruptcy professionals will fall into the category of services excluded by that clause.
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