Through these last six months, we’ve sat back and watched as major American companies, icons and brand-names like Washington Mutual, General Motors and Lehman Brothers, entered a downward spiral and filed bankruptcy.

This is not the last of this trend. According to the American Bankruptcy Institute, U.S. corporate bankruptcies surged 54 percent in 2008, and many more are on the way.

When a company files for bankruptcy– or even contemplates it–the directors and officers of the troubled firm will almost certainly face lawsuits from disgruntled investors, shareholders and regulatory bodies seeking some sort of redress.

Worse yet, directors and officers may find that their liability protection for such suits is suddenly compromised, or even unavailable in a bankruptcy situation. That could leave them personally at risk for defense costs and any financial settlements or judgments.

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


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

Already have an account?


Complex Claims & Litigation Forum 2023Event

Aimed to help Insurers prevent, prepare and prevail In adjudicating complex claims, negotiating settlements and winning cases.

Get More Information


Join PropertyCasualty360

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

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

Already have an account? Sign In Now
Join PropertyCasualty360

Copyright © 2023 ALM Global, LLC. All Rights Reserved.