You’ve been served: Seeking D&O coverage for regulatory subpoena compliance costs

Subpoenas served on a company or its directors and officers are common investigatory tools used by federal and state regulatory authorities, such as U.S. attorney’s offices, the FBI, and the Securities and Exchange Commission. Compliance with such subpoenas may require consultation with outside legal counsel and may involve time-intensive tasks associated with the production of documents and preparation of witness testimony. Not surprisingly, response costs often can become substantial, but a company may be able to recoup many of these costs through its directors-and-officers liability insurance policies.