directors and officers News

Insurers Tapped to Pay Growing Number of False Claims Act Actions

A growing number of False Claims Act investigations combined with recent court decisions that found insurers liable for the cost of settlements may spell trouble for commercial liability insurers. Policyholder attorney Geoffrey B. Fehling, with Hunton Andrews Kurth in Washington …

Shareholder Suits Over Willis/Towers Watson Merger May Cost Insurers $80M

Seven insurers that shared the risk for directors and officers policies sold to Towers Watson may have to pay up to $80 million for settlements with shareholders who cried foul after learning that the brokerage’s merger with Willis included a …

Boeing Board to Face Investors’ Suit Over 737 Max Crashes

Boeing Co.’s directors must face an investors’ lawsuit accusing them of failing to properly monitor safety issues and the development of 737 Max jetliners whose two fatal crashes have cost the company more than $20 billion. Delaware Chancery Judge Morgan …

Endless Boom in Blank Check Companies Is Wearing Out Insurers

The SPAC boom is overwhelming a key player in the creation of a blank-check companies: insurers. Firms selling directors-and-officers liability policies for special purpose acquisition companies have been flooded by the listings that surged last year. That’s caused insurers to …

Directors’ Liability Insurance Rates Surge on Virus Litigation Fears

LONDON — Premiums for directors’ and officers’ liability insurance surged in the second quarter, broker Marsh said on Monday, as insurance underwriters fear the coronavirus pandemic will lead to hefty litigation claims. Premiums for directors’ liability insurance, known as D&O, …

Cannabis Firms See Jump in Insurance Costs to Protect Leaders as Investors Sue

Canadian and U.S. cannabis companies are facing a spike in already high costs of insurance to protect top executives from personal liability, following a slew of lawsuits by disgruntled investors alleging fraud and misinformation, with more such action expected. Some …

Insurers Brace For Coronavirus Hit to ‘Event Driven’ D&O Line

What may be the first U.S. securities lawsuits alleging misdeeds related to coronavirus were filed this month — one against a cruise line and another against a pharmaceutical company that claimed to have developed a vaccine for COVID-19. There are …

D&O Litigation Trends to Watch in 2017

According to a Fitch Ratings report issued last year, the directors & officers (D&O) market “has great notoriety relative to its size.” Representing a small segment of the property/casualty market, D&O coverage equals about one percent of total industry direct …

Fitch: D&O Liability Insurance Rate Declines, Marks Soft U.S. P/C Market

The insurance market underwriting cycle is turning unfavorable in many U.S. commercial market segments, including directors and officers (D&O) liability insurance, Fitch Ratings says. Premium rates in property lines have been declining for some time in response to a lack …

AIG Expands D&O Side A Capacity to $100 Million

American International Group, Inc. (AIG) today announced that it is now offering globally up to $100 million in limits for Side A Directors and Officers (D&O) liability insurance. This new capacity from AIG, combined with the insurer’s financial strength and …