Maximizing Coverage
Steps a company can take to ensure its insurance carrier covers sublime litigation losses.
The subprime mortgage crisis and related financial meltdown has led to a wave of litigation involving not just lenders and financial institutions but also diverse companies holding mortgage-related investments. Among the types of actions being brought are: (1) securities claims against lenders and holders of mortgage-backed securities; (2) derivative actions; (3) negligence claims against professionals, such as accountants and law firms; and (4) individual and class actions alleging predatory lending and other improper practices. Of course, given the broader economic troubles, there also has been an increase in the number of litigation matters being pursued in the bankruptcy courts.
