Navigating The D&O Maze: A Handbook for Purchasers of Directors' and Officers' Liability Insurance
June 14, 1997
Stephen J. Weiss- Washington
Buying directors' and officers' ("D&O") liability insurance
requires navigating a maze of daunting complexity. Today, some 40 insurers
offer a total of more than 80 different D&O policies. Even the simplest
of these policies have an intimidating number of detailed definitions,
exclusions and conditions, with nuances of wording that can have very costly
consequences down the line. Narrow definitions and overly broad exclusions
found in many standard policies can mean the difference between your policy
covering a multimillion dollar loss or leaving you to pay the whole tab.
Fortunately, D&O policy forms are not cast in concrete. These
policies are the most negotiable form of insurance coverage. Because D&O
premiums are high, all insurance companies are willing to consider your
suggestions and, in varying degrees, to tailor their policies to meet your
needs by means of endorsements. Too few insureds avail themselves fully of
this opportunity, and, as a result, many discover devastating coverage
shortfalls after a claim arises.
This handbook is intended as a practical guide for purchasers of D&O
insurance to help them secure full value for their premium dollars.
For more information or to receive a copy of Navigating The D&O Maze:
A Handbook for Purchasers of Directors' and Officers' Liability Insurance,
please contact the author, Stephen J. Weiss, 202-457-5920 or sweiss@hklaw.com.
This book is a supplement to the Bowne Red Box Subscription Service. For
additional information on this service, please contact Bowne Publishing, New
York, (212) 229-7234 or visit www.pubs.bowne.com.