Private Company D&O Insurance: Too Broad Coverage Can Be Risky
October 30, 2007
The so-called “all risk” Directors and Officers policy for private companies, especially when combined with employment practices liability coverage, is an excellent form that should be part of the package of insurance coverages for any substantial-sized company. But the breadth of coverage is no substitute for analyzing risk exposures and using all the other types of insurance that the insured needs, such as umbrella, errors and omission, and fiduciary liability coverage, so that; 1) D&O coverage limits remain for straight-on D&O claims; and 2) the insured is not surprised to learn that an exposure which might be covered under another type of coverage is in fact excluded from the D&O coverage.