Recent corporate scandals and regulatory changes brought on by Sarbanes-Oxley have led to increased concern among directors and officers about exposure to shareholder suits. In some cases of fraud, scandal, and bankruptcy, financial losses have exceeded the limits of traditional D&O policies, leaving individuals unprotected.
Personal D&O helps protect the personal assets of directors and officers, even in the event that traditional D&O coverage is denied, unavailable, or rescinded due to criminal or fraudulent activities. Personal policies have become increasingly important as traditional D&O coverage has become more difficult to secure, more expensive, and includes more restrictions in coverage.
We can discuss Personal D&O and address some of the current issues surrounding coverage for individual directors and officers, such as
- Protection of individual assets when sued by shareholders and others, including spousal coverage for those spouses or domestic partners named as co-defendants
- Coverage tailored for the needs of individuals - personal, dedicated limits up to $10 million
- Customization of policy to cover one or any combination of boards on which the individual serves and to include the right to choose defense counsel