D & O Liability Renewals

1364 WordsJun 1, 20166 Pages
D&O Liability Renewals: What to Consider Before You Set Your Compass Prudence, in concert with the mounting surfeits of the SEC 's cocktail of rulemakings, which companies must broach during the time for 2016 risk policy, renewal considerations, is of the utmost importance, as it enables companies and their carriers to head off prospective problems in this and other areas. Significantly, private companies need to be astute with regard to employee 's and leadership 's personal exposure to risk in the event of a lawsuit against their company. Gone are the good-old-days when director’s and officer’s liability insurance renewals were more straightforward and had less reason to keep you up at night—a phenomenon which haunts the businesses at large. Some more than others. For example, two areas of particular significance would be IPOs and Biopharmaceuticals. These two are of unique interest in that they are both profoundly looked at by the SEC for reasons of mistakes and misrepresentations on the part of the former and for reasons of the proclivity of the later to meet with a wide variety of unforeseen circumstances. The SEC reportedly uses examinations, tips, complaints, referrals and coordination with other regulators in order to propose remedies specific for offenses capable of extending to problematic future destinations, and it (SEC) is successfully detecting and ordering penalties and disgorgements in the ever-widening circle of its governance of the Dodd-Frank Act.

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