Five Practical Tips For Maximizing Your D&O Insurance Coverage In The Wake Of The Great Recession

The economic turmoil and corporate dislocation of the last two years underscore the need for directors and officers to take appropriate steps to maximize their directors and officers(D&O) liability insurance. In the wake of the collapse of the U.S. credit market,directors and officers will continue to face an increase in bankruptcy litigation, shareholder claims, securities class actions, regulatory investigations and suits, and even criminal investigations and prosecutions. Complicating matters further, the economic crisis has resulted in a “soft” D&O market characterized by lower premiums, and consequently, stricter claims review and an increase in coverage denials by insurance companies. Even if your company has emerged relatively unharmed from the economic crisis of the “Great Recession,” your directors and officers will want a world-class D&O insurance program that will see them through the worst-case scenario. Set forth below are five practical tips for getting the most out of your D&O liability insurance.