PUBLISHED ON: December 31, 2000
When catastrophe strikes—a lawsuit is brought against you or other directors and officers of your organization—consider the potential insurance coverage available under a directors and officers (D&O) liability insurance policy.
When the lawsuit is filed, D&O claim handlers know that they probably can count on leading policyholder lambs to the slaughter. A D&O insurance company executive has written that policyholders’ general counsel are “usually not trained to understand insurance, especially not D&O insurance.” The same inexperience may characterize the outside counsel defending the lawsuit. Insurance companies know exactly what they are doing.