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Will D&O Insurance Cover Internal Investigations?

Law360 (April 27, 2011, 1:34 PM EDT) -- Proper internal investigations of alleged wrongdoing by corporate officers, directors and employees are critically important to good corporate governance. Those investigations can also be horrifically expensive. For that reason, as a general counsel, it is important to consider whether the corporation has insurance that will foot the bill for any particular internal investigation.

Directors and officers liability insurance, known as D&O insurance, typically covers losses resulting from claims alleging wrongful acts by the corporation’s officers and directors. In some instances, coverage extends to employees who are...
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