End of the World Insurance

I call excess side A coverage on directors' and officers' insurance policies, "end of the world insurance." Your company's by-laws includes an indemnification agreement that says that the company will pay for any litigation against a director or an officer over their service as a Director or Officer. (Note: There are legal restrictions on what … [Read more...]

Civil Money Penalty Insurance

Since the FDIC came out with their October 2013 letter clarifying/trashing the use of insurance to protect bank directors and officers from civil money penalties there has been a great deal of heat generated by discussion.  Not much light - lots of heat. About two years ago I saw the whole thing coming and started telling my bank clients to … [Read more...]

Banks In Trouble Find It Hard to Get Sound Insurance

A bank client shared some info that the FDIC is looking to warn banks that there are exclusions in some bank directors' and officers' insurance for regulatory issues. My experience is that these exclusions are almost always only on banks with regulatory issues. In general, insurers are not looking to sell insurance when the chances of a claim are … [Read more...]

The Difference Between Directors and Officers and Professional Liability

I was asked recently the difference between Directors' and Officers' Insurance (D&O) and Professional Liability Insurance (malpractice, errors and omissions). D&O covers management decisions. Professional liability covers malpractice in the business you are in. A doctor cutting out the wrong kidney is professional liability. The … [Read more...]