Emerging Risks for D&O Insurance Coverage
Although the directors’ and officers’ liability environment is always changing, the current economic, political and social climate presents a new landscape of potential D&O liabilities that may increase the frequency and severity of claims. In addition to stock market volatility, inflation, pandemic-induced bankruptcies and growing regulatory scrutiny, companies are facing increased litigation relating to special purpose acquisition companies (SPACs) and environmental, social and governance (ESG) issues. Companies may face new challenges from the lack of clarity on how courts will rule on these claims, as well as recent decisions that signal courts may be interpreting D&O policy provisions more restrictively.
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“Emerging Risks for D&O Insurance Coverage,” by Natasha Romagnoli and Kelly A. Jauregui Wueste was published on December 1, 2022, in Risk Management Magazine.