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 — July 2014
July 28, 2014  |  Views: 639 |  Comments: 0 
Global Insurance Market Quarterly Briefing — July 2014
Strong capacity leads to fifth quarter of falling insurance rates.  >>
Global Insurance Market Quarterly Briefing — February 2014
February 05, 2014  |  Views: 1193 |  Comments: 0 
Global Insurance Market Quarterly Briefing — February 2014
Global insurance rates trended downward in the fourth quarter of 2013 in all regions except the US.  >>

Additional Thought Leadership
Marsh Insights: The Changing Landscape of Environmental Liability in Canada – Now it’s Personal
December 03, 2013  |  Views: 5610 |  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: 4882 |  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: 5424 |  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...  >>
Risk Spotlight: Cyber Security—From the IT Department to the Boardroom: Are You Ready For the Call?
April 03, 2012  |  Views: 7426 |  Comments: 0 
Risk Spotlight: Cyber Security—From the IT Department to the Boardroom: Are You Ready For the Call?
This month’s Risk Spotlight looks at the issue of cyber security and how risk managers can best to prepare for the inevitable phone call from corporate leaders.  >>
Canadian Insurance Market Outlook 2012
February 23, 2012  |  Views: 5609 |  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...  >>
New Reality of Risk Webcast Series
January 18, 2012  |  Views: 5106 |  Comments: 0 
New Reality of Risk Webcast Series
Stay abreast of trends in the Canadian insurance market, gain insights from guest speakers who are experts in their fields, and discover new ways to proactively manage risk - Marsh...  >>
Hot Topics and Innovations in Financial and Professional Liability (Replay)
October 26, 2011  |  Views: 6682 |  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: 4849 |  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: 13507 |  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: 8553 |  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: 10715 |  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: 10117 |  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: 10280 |  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: 9784 |  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: 10164 |  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: 9949 |  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: 11
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: 3136
Global Insurance Rates Decline in Most Regions
Marsh Risk Management Global Insurance Index declines for first time.  Read More...
April 23, 2013  |  Views: 3239
Global Insurance Rate Firming Continues in Q1
Marks fifth consecutive quarterly rise, though at a slower pace  Read More...
January 15, 2013  |  Views: 3594
Global Insurance Rate Firming Slowed in Q4, Despite Sandy
US east coast storm not expected to be market-changing event  Read More...
April 10, 2012  |  Views: 4145
Global Property Insurance Rates Continued to Firm in First Quarter: Marsh
Global property insurance rates show signs of firming, according to Marsh's recent report, "Global Insurance Market Quarterly Briefing: Q1 2012."  Read More...
January 25, 2012  |  Views: 5628
Canadian Commercial Insurance Market Conditions Stable in 2012: Marsh
Canadian commercial insurance rates are expected to remain stable across most lines of business in 2012, continuing a trend that began in the second half of 2011, according to a co...  Read More...
September 30, 2011  |  Views: 4611
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
Sarah Robson

Toronto ON Canada
416 868 2739
sarah.robson@marsh.com