D&O In An Age Of Individual Accountability: Part 3
Law360, New York ( June 11, 2014, 6:42 PM EDT) -- In the first two articles in this series, we considered advancement and indemnification for regulatory penalties and saw that indemnification, in particular, is limited. In this final article in the series, we consider the impact of D&O insurance. The limits on indemnification for regulatory penalties mean that officers and directors need to carefully consider a corporation's insurance policies. So-called Side A coverage potentially protects officers and directors for economic loss arising from claims for wrongful acts made against the individual insured when the corporation refuses or is unable to provide indemnification. In contrast, Side B coverage is for claims by the entity for amounts paid to indemnify an insured person and Side C coverage is for claims by an entity for loss arising from a claim against the entity itself.[1]...
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