In a world of high-profile business disputes and increased legislative and enforcement activity, directors and officers need to know that their insurance programs are structured appropriately to respond should a claim arise. Hunton’s D&O insurance and executive protection team helps corporate policyholders evaluate, negotiate, and enforce their directors and officers (D&O) and management liability insurance policies to prevent coverage gaps and maximize protection for board members and executives.

Our clients range from Fortune 50 multinational corporations to small, private and not-for-profit entities and the boards of directors and executives who run them. We take a holistic approach to executive protection, analyzing D&O liability policies within a company’s broader insurance program, as well as evaluating insurance protections in tandem with pertinent charters, bylaws, indemnification agreements and other corporate governance documents.

Advice and Counseling

Effective D&O coverage begins with policies and programs that address the client’s specific risks and concerns, and that anticipate potential coverage issues that may arise from those risks. We work with clients and their insurance advisors to analyze management liability insurance programs, evaluate appropriate and relevant insurance plans and coverage, negotiate and draft coverage terms, assist with underwriting inquiries and design creative alternative arrangements to address our clients’ specific risks.

Claims Process and Negotiation

When claims or suits arise, we advise our policyholder clients about the claims process and assist them in presenting timely and clear information to their insurers. Longstanding relationships with major D&O insurers and their counsel give us insight into effective responses to insurer inquiries and positions, so that when a claim does arise, we are in a good position to work with the client—and its brokers and insurers—to help the client to comply with policy requirements and to potentially resolve coverage issues without litigation. We frequently work with our clients and their corporate governance attorneys to determine how indemnification and defense obligations work with the company’s D&O liability coverage.

Litigation and Dispute Resolution

Our insurance coverage attorneys have experience litigating and arbitrating a broad range of D&O coverage matters. And while we are fully prepared to take a matter to trial or arbitration hearing, we understand the value in a more nuanced approach to resolving D&O exposures that preserves ongoing business relationships and reduces unwanted public exposure.

• Represented Fortune 250 energy company in negotiation, mediation and multiple arbitrations of claims involving coverage under $300 million D&O liability insurance tower. Underlying claims arose from insolvency of client’s foreign subsidiaries and related US securities litigation. Favorable settlements negotiated with 10 insurers.
• Advised world’s premier package delivery company in connection with D&O liability insurance issues arising out of SEC investigation, including issues relating to the intersection of insurance coverage with company indemnification of officers and employees.
• Represented private equity executives and outside directors in securing D&O coverage for fiduciary duty claims, including full coverage for multi-million dollar settlement and reimbursement of legal fees.
• Advised Fortune 500 US electric utility holding company in eight-figure recovery under D&O policy for claims made against the company and officers and directors associated with spinoff transaction.
• Tried D&O claims of Fortune 250 energy company in multiple confidential arbitration proceedings before arbitration panels. Proceedings conducted under CPR arbitration rules.
• Represented private equity executives and outside directors in securing D&O coverage for fiduciary duty claims, including full coverage for multi-million dollar settlement and reimbursement of legal fees.
• Advised one of the largest US commercial real estate finance groups regarding D&O liability coverage for claims arising from SEC enforcement actions and related private securities class actions. Assisting client in negotiations with its D&O insurers.
• Represent banks, residential mortgage servicers and similar regulated entities and individuals under investigation and defending claims asserted by the Securities and Exchange Commission (SEC), Office of the Comptroller of the Currency (OCC), Federal Deposit Insurance Corporation (FDIC), Financial Industry Regulatory Authority (FINRA) and other state and federal regulators.
• Advised multinational corporation regarding insurance coverage under D&O liability program for alleged false advertising and unfair trade practice claims, as well as potential related shareholder claims.
• Represented manufacturing company in the recovery of defense fees and settlement payments in connection with a California Proposition 65 environmental litigation.
• Advised technology and media company regarding the scope of insurance coverage for underlying securities class-action lawsuit.
• Advised corporate board members of multiple clients regarding the sufficiency and scope of Side A D&O insurance coverage.
• Draft policy language and assist insurance professionals in negotiations during policy renewal.