D&O Insurers Offer Less for More
- Topics:
- Directors and Officers Coverage
- Tags:
- Business Operations,
- CFO Publishing Corp.,
- Corporate Insurance,
- Coverage,
- D&O,
- Insurance,
- Insurance Company
- Source:
- CFO Publishing
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Overview: The real driver of premiums is the rise in sky-high securities class-action settlements. Insurers are introducing new policy language that guts many D&O protections and could cost companies millions. Many insurers are demanding that clients agree to co-insurance, which requires the company to pay a portion of the entire cost of the claim. The list of changes goes on: multiyear policies are a thing of the past; non cancelable insurance is heading that way; and insurers now charge handsomely for entity coverage, which covers a corporate entity's liability in shareholder claims. Companies can also expect problems getting employment practices liability coverage as well as coverage of punitive and exemplary damage payments in states where such coverage is allowed. To have information on the issue discussed read the article.
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Format: HTML | Date: Apr 2002 | Pages: 1
