Competing Interests In D&O

Reprinted with permission from Risk Management, April 2009 issue, page 92. Copyright 2009 Risk and Insurance Management Society, Inc. All Rights Reserved.
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Directors and officers liability insurance is one of the few types of insurance that interests a company's senior management. This is because D&O is one of the few insurance products left that still provides reasonably broad protection against serious losses and defense costs—a protection that is especially valuable in a time where many corporations are on life support. Ironically, the broad scope of D&O coverage gives rise to its own set of problems—namely, a fight between various insured interests for the policy proceeds.