D&O Insurance and the Coronavirus (COVID-19): Key Issues & Talking PointsMarch 20th, 2020
As we grapple with the human and personal effects of COVID-19, the pandemic is forcing companies and their directors and officers to closely examine risks related to the virus and potential insurance that may be applicable to sustained losses. CAC Specialty’s Financial Lines Practice answers your frequently asked D&O insurance questions.
As was the case with the relatively few claims that arose from past pandemics, we anticipate the early COVID-19 related claims will target the most heavily impacted industries including healthcare, retail and hospitality, gaming and casinos, airlines and travel, as well as those companies accused of committing outright fraud for allegedly misleading investors and the public with respect to potential cures for, or product efficacy in connection with mitigation of, the virus. As the pandemic progresses, and plaintiffs dig more deeply into other company disclosures, we may see additional claims relating to financial disclosure issues including goodwill impairment and/ or bankruptcies.
In the attached summary, our professionals examine what kind of D&O claims are we likely to see emanating from the COVID-19 outbreak and provide suggestions on how to approach your D&O renewal.
- Have there been any D&O claims to date arising out of COVID-19?
- How will COVID-19 impact our D&O renewal?
- Key points to keep in mind as you approach your renewal
- Are there new terms and conditions we need to specifically negotiate in light of COVID-19?
- What D&O insurance policy terms, conditions or exclusions may be implicated in a D&O claim arising out of COVID-19?
- How does the policy response differ for private companies?
- Shouldn’t we notify our D&O insurer of all potential claims that could arise out of COVID-19 & its impact on our company?
As the COVID-19 crisis continues, The CAC Specialty Financial Lines Practice is available to assist you with any further D&O insurance questions you may have.