D&O insurance may help non-public companies with COVID-19 claims

An important piece of the insurance coverage puzzle for non-public companies is their D&O policies. (Photo: Shutterstock)

Though most initial COVID-19 insurance-related analysis is focusing on first-party insurance, companies should also review their third-party insurance coverage in response to this pandemic.

Non-public companies would be well-advised in this review not to overlook directors and officers (D&O) insurance, which often provides quite broad liability coverage to such companies. Although D&O coverage for public companies is generally limited to “securities claims,” coverage for non-public companies generally includes any “claim” against the company not otherwise excluded. This broad coverage grant could prove extremely valuable for many non-public companies, given the volume and variety of lawsuits likely to result from COVID-19.