Is Your D&O Insurance Prepared for Greenwashing Claims?
As regulators and shareholders continue to scrutinize environmental, social and governance products for hints of greenwashing, fund directors may want to review their insurance plans to make sure they’re covered for any related lawsuits and actions, insurance experts said.
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For Jared Zola, a partner in Blank Rome’s policyholder-only insurance recovery practice, the discussion of D&O insurance coverage is part of a bigger conversation about insurance.
“My recommendation to any board member is to not really focus on the hot issues of the day but to make sure that the entity has significant limits of traditional D&O insurance and also A-side insurance,” he said, adding that a key question is at what dollar point does the insurance start.
“My general philosophy on D&O insurance is…to not look at the shiny object but to focus on broad insurance agreements and narrow exclusions, because you just don’t know what the one risk is that you may face over the next year or years,” Zola said. “The best coverage you can have in place doesn’t focus on any issue, provides the broadest coverage, and has the narrowest exclusions.”
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"Is Your D&O Insurance Prepared for Greenwashing Claims?" by Whitney Curry Wimbish was published in BoardIQ on September 6, 2022.