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.
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.
- Who is the insured under the insurance policy or fidelity bond?
- Is the amount of coverage under the insurance policy or fidelity bond sufficient to protect against the risk?
- Is there more than one insured under the insurance policy or fidelity bond?
- What exclusions are contained in the insurance policy?
- Does the policy exclude coverage for certain activities by endorsement?
- Does the insurance policy provide for notice obligations in certain events such as cancellation, termination or modification? Who should receive notice?
- Does the policy provide for interim payment of defense costs?
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