D&O and Management Liability Insurance Partner Thomas Bentz participated in a Financier Worldwide Magazine
roundtable discussion on current risks facing directors & officers (D&Os), in particular focusing on the challenging environment created by the coronavirus pandemic. During the roundtable, participants answered questions about topics including key factors shaping the current risk landscape, the extent to which high-ranking executives are being held personally liable for transgressions within their companies and key areas to review when assessing a D&O liability policy. When asked about how D&Os should respond to the current environment, Mr. Bentz stressed monitoring and documenting how fiduciary duties are being fulfilled as well as the importance of exercising proper business judgment.
"Businesses facing financial distress should consider their unique fiduciary duties related to insolvency and how their potential exposure may be addressed in their D&O policy," he added. "It is very important to make sure that the D&O policy prioritizes coverage for individual D&Os, as opposed to the company. Again, minor changes to the policy on this topic could make a significant difference if the company is forced to file for bankruptcy protection."
READ: Risks Facing Directors & Officers