Today's blog post is the second video in a three-part series
addressing steps that policyholders should take to maximize
insurance recovery for governmental investigations under D&O
insurance policies. Public and private companies are frequently the
subject of governmental investigations. Defense of these
proceedings is expensive. It is not atypical for defense costs to
exceed $10 million for a typical investigation, with larger
investigations costing hundreds of millions of dollars.
There are a number of steps that policyholders take to maximize
insurance recovery for governmental investigations. Because defense
of governmental investigations is typically front end loaded, the
issue of when defense coverage is triggered is a critical. If
coverage is triggered when a lawsuit is filed, coverage may be
useless in a situation where a claim is settled prior to the filing
of a formal lawsuit. Coverage under a D&O policy should be
triggered prior to the government's
