Publications

Things to Know About Your D&O Insurance Before Investigation Begins

March 16, 2010
New York Law Journal

Whether the Securities and Exchange Commission is reviewing another alleged Ponzi scheme, an attorney general is investigating a corporation’s public disclosures or a government committee is examining a transaction that purportedly contributed to the current economic crisis, it is very difficult to pick up the newspaper these days without reading about a new investigation into a corporation’s financial affairs.

When a corporation is under siege, the directors and officers look to legal counsel to protect their rights during the investigation. But regulatory investigations are often lengthy, particularly those involving alleged fraud or large sums of money, and qualified legal counsel can get expensive. While we encourage directors and officers to review (or have a professional review of) the entire policy, the following is a discussion of the key D&O policy terms that directly impact the right to payment of defense costs incurred in connection with regulatory investigations.