Managing Risk: An Organization's Responsibilities
Claims are regularly brought against corporate directors on a wide variety of legal theories, including allegations of breach of fiduciary duty, or for securities law violations, or pursuant to derivative or oppression actions. These lawsuits are expensive to defend and they expose the individual to significant reputational risk and the risk of significant personal liability.
In the event that a claim is asserted, ‘coverage denied’ are the two words a director never wants to hear in respect of his or her D&O insurance coverage. Yet with some regularity, carriers deny or challenge coverage at the worst of all possible times, when the director needs funding immediately to prepare to defend against a regulatory, civil or sometimes even criminal action or investigation relating to the performance of his or her duties as a corporate director.
This session will provide corporate secretaries and other governance professionals with a basic understanding of the structure of D&O insurance programs, policy wording and ‘good practices’ in dealing with D&O insurers.
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