There is a common presumption among community banks, and their directors, that D&O insurance coverage is a commodity. That presumption is inaccurate; there can be significant differences in the scope and quality of D&O coverage between policies and among carriers. D&O insurance policies can, and should, be negotiated to improve the coverage for directors and officers.
In the article, Jim highlights ten possible enhancements that you may be able to obtain in your D&O coverage, including:
- limiting the definition of “Application” in the policy to public filings for the past 12 months;
- expanding the definition of “Claim” in the policy;
- obtaining non-rescindable Side A coverage;
- limiting insured vs. insured carve-backs for derivative suits and bankruptcy;
- carving back defense costs from regulatory exclusions; and
- including coverage for punitive damages.
If you’d like to discuss further, please consider reaching out to Jim McAlpin or any other member of Bryan Cave’s Financial Institutions practice.