CAC Connect

A recurring management liability coverage issue where policies do not expressly exclude disgorgement and restitution from covered “Loss” is whether disgorgement or restitution for alleged fraudulent conduct is otherwise uninsurable as a matter of law and/or public policy (the so-called “Uninsurability Defense”). A sometimes-related issue is the appropriate allocation for covered and uncovered matters and entities involved in claims. The answer to these questions, at least in Delaware, occurred in two recent cases where it

What Is A Securities Claim? In addition to insurance for directors and officers, D&O policies for public companies provide balance sheet protection for the entity itself, but such coverage is generally limited to “Securities Claims” as defined in each policy, also known in the industry as “Side C” coverage. Typically brought in the form of class action and derivative lawsuits by shareholders, securities claims often allege breaches of disclosure or fiduciary duties, or misleading and

Today’s blog post is from CAC’s Cyber team. Enjoy! Hard Market The cyber market is officially hard. Having a strong and comprehensive cyber renewal strategy, and a broker with the ability, relationships, and expertise to achieve your goals in a hard market, has never been more important. We saw steady but incremental rate adjustments throughout 2020, and the cyber market has kicked off 2021 having fully transitioned to a hard market; where we might have

It is 2021, and we are off to an interesting start. I’m going to leave it at that, and not focus on the negative. I’m looking for some good news. And I found a piece of it! Securities Class Action Filings Decrease Securities class action filings were down year over year. According to the Stanford Class Action Clearinghouse, 324 SCAs were filed in 2020 as compared to 402 filings in 2019. I know what you’re

Bankruptcy and D&O Insurance We have to talk about the “B” word. No one wants to go there. But as COVID-19 continues to wreak havoc throughout the world, we are seeing more companies headed that way. Although the stock market continues to soar, the underlying US economy is sputtering. Bill collectors are still open for business, and certain companies, especially those that were in precarious financial positions before the pandemic (think certain retail chains and