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Article: Proceed with caution when reporting a D&O claim.(Perspective)
- Article from:
- Business Insurance
- Article date:
- March 31, 2008
- Author:
CopyrightCOPYRIGHT 2008 Crain Communications, Inc. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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Byline: William A. Boeck
Directors and officers liability insurers want to know what is going on with the companies they insure.
Most companies want to communicate openly with their insurers. While you might think D&O policies would be structured to encourage such communication, as demonstrated by the terms governing reporting of potential claims, that isn't always the case. Paradoxically, reporting a potential claim can be the basis for an insurer's declination of coverage.
Virtually all D&O and similar professional liability policies are written on a claims-made basis. For coverage to apply, the claim must be made while the policy is in ...