Wildfire-Related D&O Insurance Risk: Lessons and Litigation Trends
Wildfire-related directors and officers (D&O) lawsuits represent a growing category of event-driven shareholder litigation. These insurance claims arise from major environmental
D&O insurance policies offer liability coverage for company managers to protect them from claims which may arise from decisions and actions taken as part of their duties. Today’s increasingly complex legal environment means businesses face a heightened prospect of liabilities and litigations, often driven by “adverse news events”. Companies usually purchase D&O insurance because lawsuits are expensive, and the costs associated with them are rising. Moreover, if companies do not have a good D&O insurance program in place it is unlikely that they will be able to attract top managerial talent, given the potential risks involved.
