Insurers Cannot Rely On 'Absurd' Exclusion Applications
By Karthik Reddy and Matthew JacobsApril 9, 2018, 4:01 PM EDT
Law360 (April 9, 2018, 4:01 PM EDT) -- For many corporate directors and officers, litigation exposure is a fact of life. Arguably, directors and officers can face personal liability for even innocent errors in judgment, and the defense costs alone can be staggering. Directors and officers (D&O) insurance offers these individuals and their companies protection from third-party claims that might otherwise impede corporate decision-making and discourage competent individuals from assuming corporate leadership positions.
Most D&O policies provide coverage for those claims made against policyholders during the policy period, unless otherwise addressed by specific provisions....