Does Your D&O Policy Really Cover Gov't Investigations?

By Lilit Asadourian, Paul Walker-Bright and Jessica Brown (November 22, 2017, 11:04 AM EST) -- Policyholders need to be aware of a recent Tenth Circuit decision, MusclePharm Corp. v. Liberty Insurance Underwriters Inc., which calls into question whether and when a directors and officers policy will respond to a government investigation. Currently, there is a split among jurisdictions regarding coverage for government investigations, with the Tenth Circuit now falling into the no-coverage camp. This ruling highlights the importance of understanding the scope of investigative coverage your company is purchasing and the requirements for triggering coverage thereunder....

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