In a video produced by The Directors Letter, Goodwin Litigation partner Carl Metzger discusses directors and officers liability insurance with Dan Daly, the publisher The Directors Letter, and Rob Spofford, the President of The Spofford Group, a retail insurance brokerage firm specializing in management liability. The video, “D&O Insurance: A Director’s Need to Know,” focuses on what D&O liability insurance is and why directors need it.
When addressing the items directors should consider in looking at various D&O policies, Metzger comments on why D&O liability insurance has become such a hot issue in corporate board rooms: “It used to be that board members generally were concerned with who is my carrier and how much coverage do I have. Now it’s gotten much more complicated, in good ways, because the coverage has gotten more comprehensive.”
Later, Metzger describes the types of organizations that are likely to be sued: “The bottom line is no company is immune from the risk of claims against either the company or the board members or the officers,” said Metzger. “You can do things to minimize the risk. You can do things to put protections in place like D&O insurance and indemnification. You cannot eliminate the risk.”
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