Media Coverage
Source: Business Insurance
Media Coverage
Press Contacts: Erik Cummins, Matt Hyams, Olivia Thomas
03.12.20
Business Insurance reported that businesses should brace themselves for a likely flood of shareholder suits related to the new coronavirus outbreak. Although the success of any litigation may depend on companies’ willingness to fully disclose directors and officers’ liability-related risks now, experts said.
In addition to D&O suits, commercial policyholders may face lawsuits and claims related to employment practices liability, cyber liability and workers’ compensation exposures stemming from COVID-19.
Last week, the U.S. Securities and Exchange Commission directed companies to disclose information related to the coronavirus, which could have implications for D&O claims.
“If shareholder suits are filed, D&O insurance should pay claims,” said Peter Gillon, a Pillsbury Insurance Recovery & Advisory partner. “Fortunately, such securities litigation falls well within the scope of typical D&O coverage, so most companies should be insured against the potential securities litigation risks.”
Gillon concluded that policyholders should make sure that if their D&O policy has some form of bodily injury exclusion, it does not apply to securities claims, and that it does not preclude coverage for claims against directors and officers or otherwise limit coverage for these risks.