D&O LIABILITY


There is little directors and officers can do to diminish the complexity of the business, legal and regulatory environment in which they operate. However, a great deal can be done to protect the personal assets of directors and officers.

D&O Liability RiskDirectors and officers operate in an extremely difficult environment. The fundamental principles governing their conduct have come under increasing judicial and regulatory scrutiny.

Shareholder groups have fostered additional unrest by pressuring corporate management to make swifter changes and improvements to remain economically competitive in the complex world markets. Although there is no single solution for protecting directors and officers from liability, directors and officers (D&O) liability insurance can be an effective tool in mitigating a firm's overall exposure. Marsh's FINPRO Practice can provide D&O insurance designed to protect a director or officer of a firm for liability due to breaches of duty resulting from negligence, error, or omission.

Directors and officers coverage is typically underwritten on a one-year basis for a single aggregate limit of liability. Many corporations purchase some form of entity coverage or predetermined allocation for securities law claims as a means of avoiding much of the traditional allocation of loss that normally occurred under previous D&O policies. Allocation often resulted in disputes between D&O underwriters and policyholders as to how certain elements of a loss, such as uncovered policies or wrongful acts, should affect the ultimate amount of insurance recovery.
Marsh Risk Management Research
Global Insurance Market Quarterly Briefing — November 2014
November 27, 2014  |  Views: 1229 |  Comments: 0 
Global Insurance Market Quarterly Briefing — November 2014
The Marsh Global Insurance Index reflected a sixth consecutive quarter of rate decreases, but the slide in rates has accelerated since the beginning of 2014.  >>
Cyber Security and the Boardroom
September 24, 2014  |  Views: 814 |  Comments: 0 
Cyber Security and the Boardroom
Boards of directors must not only devote more attention to cyber risks, but also evaluate their organizations' readiness for an attack.  >>

Additional Thought Leadership
Marsh Insights: The Changing Landscape of Environmental Liability in Canada – Now it’s Personal
December 03, 2013  |  Views: 16681 |  Comments: 0 
Marsh Insights: The Changing Landscape of Environmental Liability in Canada – Now it’s Personal
Every now and again there are events that galvanize the attention of the general public, politicians and various governmental regulators alike and create a heightened sense of awar...  >>
Onsite Defibrillators: Benefit or Burden?
July 03, 2013  |  Views: 15979 |  Comments: 0 
Onsite Defibrillators: Benefit or Burden?
According to Statistics Canada, nearly 40,000 cardiac arrests occur each year in Canada — one episode every 12 minutes1 — which accounts for 29% of all deaths in Canada.  >>
Liability Considerations for an Initial Public Offering
May 14, 2012  |  Views: 16514 |  Comments: 0 
Liability Considerations for an Initial Public Offering
Initial Public Offering (ipo) Exposures: Background InformationIntroductionWhether listing on a Canadian, U.S., or international stock exchange, an initial public offering (IPO) ma...  >>
Canadian Insurance Market Outlook 2012
February 23, 2012  |  Views: 16676 |  Comments: 0 
Canadian Insurance Market Outlook 2012
On February 15, 2012, risk, insurance and financial services specialists from Zurich Canada, HSBC Securities (U.S.A.) Inc. and Marsh Canada Limited held a one-hour Webcast to addre...  >>
Hot Topics and Innovations in Financial and Professional Liability (Replay)
October 26, 2011  |  Views: 17853 |  Comments: 0 
Hot Topics and Innovations in Financial and Professional Liability (Replay)
Our panel of experts address the risks observed with the new innovations being introduced in financial and professional liability.  >>
Risk Spotlight: The Foreign Corrupt Practices Act—Is Your Firm Prepared?
October 03, 2011  |  Views: 15883 |  Comments: 0 
Risk Spotlight: The Foreign Corrupt Practices Act—Is Your Firm Prepared?
We discuss how Marsh can assist organizations in staying prepared and compliant in light of the inherent risks associated with foreign corruption.  >>
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Insurance Coverage for FCPA Investigation Costs
July 14, 2011  |  Views: 44934 |  Comments: 0  | Article Rating
Insurance Coverage for FCPA Investigation Costs
Marsh's FCPA Corporate Response is the only insurance mechanism that provides cost of investigation coverage for both individuals and the organization.   Read More...
Financial and Professional Liability
February 17, 2011  |  Views: 29630 |  Comments: 0  | Article Rating
Financial and Professional Liability
With more than 1,000 Global professionals dedicated to D&O, leading expertise in a wide variety of industries, and a solid business relationship with most of the insurance markets,...  Read More...
Legal and Business Trends Impacting Directors and Officers Liability Insurance
August 11, 2011  |  Views: 31946 |  Comments: 0  | Article Rating
Legal and Business Trends Impacting Directors and Officers Liability Insurance
Securities Class Action ClaimsFilingsAccording to National Economic Research Associates (NERA), in 2010 there were 8 new securities class actions filings in Canada involving claims...  Read More...
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Soft Commercial Insurance Market Conditions Expected to persist in Fourth Quarter of 2010
November 19, 2010  |  Views: 30606 |  Comments: 0  | Article Rating
Soft Commercial Insurance Market Conditions Expected to persist in Fourth Quarter of 2010
Soft commercial insurance market conditions are expected to persist through the fourth quarter of 2010, according to preliminary rate information published last week by Marsh.  Read More...
Multinational Companies Face Increased D&O Risks With Tighter Insurance and Tax Regulations
November 10, 2010  |  Views: 30889 |  Comments: 0  | Article Rating
Multinational Companies Face Increased D&O Risks With Tighter Insurance and Tax Regulations
Risk managers must ensure they have adequate directors and officers (D&O) coverage, as shareholder lawsuits increase with U.S. companies expanding overseas, according to a recent w...  Read More...
Provisions of Wall Street Reform May Affect Non-Admitted Premium Tax Obligations
October 06, 2010  |  Views: 30250 |  Comments: 0  | Article Rating
Provisions of Wall Street Reform May Affect Non-Admitted Premium Tax Obligations
Certain provisions of the recently enacted Dodd-Frank Wall Street Reform and Consumer Protection Act may affect state premium tax obligations resulting from premium payments made t...  Read More...
Insurance Costs To Increase 'Modestly' For Offshore Energy Risks
August 06, 2010  |  Views: 30709 |  Comments: 0  | Article Rating
Insurance Costs To Increase 'Modestly' For Offshore Energy Risks
Major losses sustained in the Gulf of Mexico will not have the same market-changing impact on the upstream energy insurance market as other major events such as Hurricane Katrina, ...  Read More...
Global Regulatory and Tax Changes To Affect Multinational Companies
July 21, 2010  |  Views: 30385 |  Comments: 0  | Article Rating
Global Regulatory and Tax Changes To Affect Multinational Companies
Senior executives and risk managers of global companies are increasingly vigilant of regulations around insurance requirements, premium taxes, and insurance compliance, as they str...  Read More...
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February 05, 2014  |  Views: 12
Global Insurance Pricing Declines in Fourth Quarter: Marsh
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US only region with higher overall renewal rates.  Read More...
August 07, 2013  |  Views: 5054
Global Insurance Rates Decline in Most Regions
Marsh Risk Management Global Insurance Index declines for first time.  Read More...
April 23, 2013  |  Views: 5204
Global Insurance Rate Firming Continues in Q1
Marks fifth consecutive quarterly rise, though at a slower pace  Read More...
September 30, 2011  |  Views: 6568
No Overall Change to Insurance Rates in Q3: Marsh
Despite significant insurance losses in the first half of the year, insurers have remained competitive but cautious.  Read More...

Contacts
Carolyn Oliver

Toronto ON Canada
416 868 7074
carolyn.oliver@marsh.com

Andrea Orviss

Vancouver BC Canada
604 443 3570
andrea.orviss@marsh.com