Sunday, December 7, 2008

Stradley Ronon: Seven Things Directors Should Know About D&O Insurance

Stradley Ronon's Craig R. Blackman and Heather M. Tashman have written a short piece, "Insurance and Banking Coverages: Seven Things Fund Directors and Trustees Should Know," alerting investment company directors to key points they should consider when renewing or obtaining new D&O insurance. 

The article addresses the following seven questions directors should ask, providing a short explanation for each about why the question is important for directors and trustees to consider. 

  1. Who is the insured under the insurance policy or fidelity bond?

  2. Is the amount of coverage under the insurance policy or fidelity bond sufficient to protect against the risk?

  3. Is there more than one insured under the insurance policy or fidelity bond?

  4. What exclusions are contained in the insurance policy?

  5. Does the policy exclude coverage for certain activities by endorsement?

  6. Does the insurance policy provide for notice obligations in certain events such as cancellation, termination or modification? Who should receive notice?

  7. Does the policy provide for interim payment of defense costs?

The full text of the article is available at: