In the latest online-only column from Anderson Kill & Olick, Joshua Gold discusses how D&O coverage can be complicated by government investigations.
Most D&O insurance policies promise some measure of insurance protection against “regulatory and governmental” investigations, “administrative or regulatory proceedings” and criminal proceedings. However, many insurance companies will argue this coverage is not triggered until certain documents are prepared by the investigating entity and until they are prepared and drafted in a very specific way. For instance, does the investigation start when a subpoena is served or only when a “formal” investigative order is issued under the insurance policy? Insurance companies may argue that they are not on the hook for millions of dollars in “loss” until certain specific aspects of the investigation come to pass.
Considering the importance of D&O coverage for senior management, you won’t want to miss this online exclusive, only on RMmagazine.com.
Hi and a good day Mr O’Rourke,
I have just started work with an investment management fund and I am from the corporate side. Interestingly, apart from doing corporate deals alone, our department has been inheriting the task of doing the D&O insurance policy for the company.
I would like to seek your input or suggestions on this practice. From your experience, which department is best suited to managing the D&O insurance exercise for a company.
Based on my limited experience, the Risk Management side seems more suited and better equipped to deal with the issue. Hope you could provide me with some insights or suggestions on the above.
Thank you for your time.
Yours truly,
Amirul Hakim,
Kuala Lumpur, MALAYSIA.