De-Mystifying D&O: A Primer for Texas Lawyers

01 July 2016 Publication

The Advocate

Although a multitude of liability insurance genres exist in today’s marketplace, Directors and Officers Liability Insurance (“D&O”) remains one of the least understood. A review of several common features of D&O may help explain its structure and provide a better understanding of its scope, purpose and coverage.

A Brief History
With the passage of the Securities Act of 1933 and the Securities Exchange Act of 1934, Lloyds of London began offering coverage to individual directors and officers who could face potential liability under the new statutes. Directors and officers perceived little risk, so few of these policies were sold.

The advent of state statutes in the 1960’s and 1970’s permitting corporations to indemnify directors and officers against fiduciary and management liabilities brought D&O policies to the forefront of the corporate insurance market. Today, nearly100% of public companies and between 75% and 80% of private companies purchase some form of D&O insurance.

Read more.

Related Services

Insights

A Review of Recent Whistleblower Developments
19 July 2019
Legal News: Whistleblower Developments
Blockchain: A Tool With a Future in Healthcare
18 July 2019
Health Care Law Today
Do You Know What IMMEX Stands For?
16 July 2019
Dashboard Insights
Does The U.S. Need STRONGER Patents?
16 July 2019
PTAB Trial Insights
Review of 2020 Medicare Changes for Telehealth
11 December 2019
Member Call
2019 NDI Executive Exchange
14-15 November 2019
Chicago, IL
MAGI’s Clinical Research Conference
29 October 2019
Las Vegas, NV
Association for Corporate Counsel Annual Meeting 2019
27-30 October 2019
Phoenix, AZ