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Guidelines for Maximizing D&O Insurance Coverage for SEC Matters

By Katherine Henry
April 29, 2012

Most corporate counsel know that their D&O insurance may advance or reimburse defense costs, and settlements or judgments incurred in civil litigation naming their directors and officers (as well as the company if entity coverage is purchased). Depending upon policy terms, D&O insurance may also pay defense costs incurred in response to various Securities and Exchange Commission (SEC) actions as well, including an informal investigation, a formal order of investigation, a subpoena or an indictment. Coverage varies widely depending upon the D&O policy terms. Any corporate counsel approached by the SEC must tread carefully, as hundreds of millions of dollars in coverage have been lost by major corporations facing SEC matters.

The following are some inquires and suggestions designed to help in-house counsel secure their rights under D&O policies in SEC matters and derive the greatest benefit from their premiums.

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