BOSTON/LONDON (Reuters) – Some of the world's largest insurers for corporate directors and officers could be on the hook for hundreds of millions of dollars in claims over the next few years to cover legal costs for people caught up in the Libor scandal.
As a result of those costs, which insurers fear could accumulate for the next few years, already rising insurance rates stand to go even higher for all companies.
Directors and officers (D&O) insurance pays a wide range of defense costs for executives who get sued as a result of business decisions, from the initial inquiries all the way through the last stages of trial or settlement.
The sums involved are substantial. Consultants Towers Watson reported that in 2011, companies with more than $10 billion in assets on average carried $187.5 million in insurance coverage.
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