Directors & Officers Liability — Pick A Side (or B or C)

In preparation for the Directors & Officers webinar we are offering next month we reviewed the range of resources The Insurance Library has for research on this important topic, including materials appropriate for gaining an introduction to the line as well as taking a deep dive into intricacies of issues and coverage.  Below are some highlights and commentary.

An excellent source for providing specimen forms and analyzing and comparing specific Directors and Officers Liability Policies is IRMI’s D&O Maps. It is more comprehensive than any other resource we’re aware of for this purpose.

The Betterley Report (also published by IRMI) provides a useful comparison of Side A D&O policy features but the last one was published in 2016. The Private Company Management Liability Insurance Market Survey provides some similar information.

FC&S Expert Coverage Interpretation has a “channel” devoted to Directors and Officers Liability which provides a history of the coverage and analyzes common terms, conditions, definitions and exclusions found in the policies. It also has a comparison chart for looking at different policies.

For those who are interested more in the market than on specific coverage, Directors and Officers liability is one of the lines highlighted in the RIMS Benchmark SurveyIt provides the leading insurers, premium changes, purchases by industry as well as limit and retention benchmarks.

In addition to the resources listed above, below are a list of recent articles on the D&O market as well as books on coverage. We’ve also provided some titles from our archives for those interested in a historical perspective.

Recent Articles:

  • Directors and Officers Trends to Watch, by Rachel Soich, FCAS, MAAA, National Underwriter Property Casualty, 123 no. 11 (November, 2019): 20-21
  • D&O Rates Rise after Unicorns Stumble (includes renewal pricing changes by quarter since 2016), by Judy Greenwald, Business Insurance, 53 no. 13 (December, 2019): 24-25
  • A Perfect Storm? A Forecast for the D&O Market, by Will Fahey and Todd Greeley, Business Insurance, 53 no. 13 (December, 2019): 26
  • Litigation Against Companies and Their D&Os on the Rise, The Standard, 285 no. 12 (December 13, 2019): 6, 8
  • Tracking The Exposures and Insurance for Executive Liability Risks, by Richard (Dick) G. Clarke, CIC, CPCU, RPLU, Resources, (Winter, 2019): 18-21

Books:

  • Directors and Officers Liability: Exposures, Risk Management and Coverage, by Joseph P. Monteleone, Esq (2013) Erlanger, Kentucky: The National Underwriter Company
  • Directors and Officers Liability Insurance Deskbook, by Martin J. O’Leary, John Blancett, Michael R. Davisson, Ralph Guirgis, Eric C. Schneiner and Edward G. Smerdon (2016) Chicago, Illinois: American Bar Association
  • D&O 101: Understanding Directors & Officers Liability Insurance — A Holistic Approach, by Larry Goanos (2014) Wells Media Group
  • Liability of Corporate Officers and Directors: Indemnification and Insurance, by William E. Knepper and Dan A. Bailey (2019) New York, New York: Matthew Bender& Company
  • Law of Corporate Officers and Directors: Indemnification and Insurance, by Gary Lockwood (2018) Thomson Reuters
  • Law of Corporate Officers and Directors: Rights, Duties and Liabilities, by Ronald J. Colombo (2018) Thomson Reuters
  • Directors and Officer Liability, by John F. Olson, Josiah O. Hatch, III, Ty R. Sagalow and Nancy McKenna, (2018) Thomson Reuters

From the Archives:

  • The Occupational Hazard of Corporate Directors and Officers (and Address Before The Insurance Buyers Association of Detroit, ASIM) by Frazier S. WilsonThe National Insurance Buyer, 11 no. 3 (May, 1964): 6, 18, 20, 22, 24, 26.
  • Corporate Directors’ and Officers’ Liability Insurance, by Ronald T. Anderson, PhD, CPCU, CLU, J. Finley Lee, PhD, CPCU Annals, 24 no. 3 (September, 1971): 257-270
  • The 1974 Wyatt Directors and Officers Liability Survey Summary Report (197) Chicago, Illinois: The Wyatt Company
  • Directors & Officers Liability: An Analysis Prepared by the Technical Development Committee of the National Association of Insurance Brokers (February 1975) National Association of Insurance Brokers
  • Protecting the Corporate Officer and Director from Liability 1977, by Joseph F. Johnston, Jr. (February 197) New York, New York: Practicing Law Institute
  • Directors’ and Officers’ Liability Insurance Report by Advanced Study Group No. 226 of The Insurance Institute of London,  (October 1986) London, England: The Insurance Institute of London