Goldberg Segalla

Directors and Officers Liability Coverage

In the financial world, it is now commonplace that disappointed investors will charge corporations (and their officers and directors) with securities fraud whenever a company’s stock drops significantly in price. As a result, directors and officers (D&O) liability insurance has become a core component of corporate insurance, protecting directors and officers from liability arising from actions connected to their corporate positions. 

Due to general expansion in the industry, market pressures and the industry’s responses to the development of case law, D&O insurance has expanded beyond its original and basic coverage. A single policy now may provide multiple and varied options by standard form or endorsement. The D&O insurance industry is also highly specialized, with new products constantly emerging to meet the needs of specific markets. 

The attorneys at Goldberg Segalla partner with our clients to understand their unique policies, and work together to achieve a favorable outcome. Some of our recent engagements have involved:

• Side A/Side B disputes
• The scope of entity securities and employment practices liability (EPL) coverage
• Right to select counsel and scope of defense issues
• Whether a “claim” and “loss” exists
• Application of exclusionary language, including the dishonesty exclusion, insured versus insured exclusion, professional liability exclusion and prior acts exclusion
• Bankruptcy claims and their effect on D&O coverage