Blog posts

Recent surveys indicate that cyber security has become a primary concern within the c-suite, in some surveys surpassing concerns of regulatory investigations, employment claims and shareholder litigation, which is why it’s no longer possible to address executive liability without addressing cyber risk. There is also considerable confusion among companies when it comes to the topic of cyber risk and cyber insurance. In order to be better prepared when placing coverage, there are some intricacies all companies should be aware of.

Side A coverage is the insuring agreement within a D&O policy that provides first dollar coverage (in the form of defense costs and settlements) for claims asserted against directors and officers, whose costs are not indemnified or advanced by the corporate entity. We have outlined some of the most common claim scenarios in which Side A coverage may be triggered (below).

As highlighted in our recent Public Company D&O Exposure Assessment, shareholder litigation following allegations of sexual misconduct have become more frequent in the #metoo era signaling an emerging risk to the c-suite (of both public and private companies alike).

In order to ensure their EPLI insurance policies will respond, in light of growing employment liability claims, companies and their directors are becoming increasingly aware of the importance of in depth EPLI insurance assessments. In order to supplement our previously published D&O CHECKLIST and assist the c-suite in their coverage audits, we have recently published a thorough 4 page EPLI CHECKLIST (HERE).

*** The following article was originally written for, and appeared on www.FCPABlog.com, and is re-posted with the publishers' permission. ***
 

With almost $6 billion raised last year and offerings being explored by a myriad of companies from fintech to blockchain to cannabis companies, the fundraising capabilities and momentum behind ICOs is undeniable. Companies engaged in cryptocurrency offerings however also face considerable challenges. Along with the widespread speculation over the “bursting of the bubble”, there are also considerable taxation and volatility concerns. The turbulent regulatory landscape and recurring cases of fraud however take front and center.

Great opportunities come along in waves. In 1850 it was the gold rush. 1933 brought opportunity at the end of the prohibition. The 1990's the tech boom. Fast forward to today and the marijuana industry is well on its way to becoming the next thriving industry. But, like all companies that are born in the infancy of a new industry, there are significant challenges.

It’s often said that art and film imitate life. While the sexual harassment scandal rocking Hollywood is (sadly) no film, it is shining a light on important employment liability issues that often fly under the radar. While the claims and media storm against Harvey Weinstein may have taken center stage, a look at the list of accused actors and affected organizations reads like a list of invitees to the red carpet. And that growing list shows no signs of slowing. But Hollywood is not the only “bad actor”.

For directors, officers, and professionals alike, nothing is more fear inducing than facing a large lawsuit while being uncertain if your insurance program will respond or not. There are however some steps that can be taken to minimize the likelihood of claim denials. In part 1 (below), we discuss some policy structure considerations.

Placing public company D&O insurance is often a fairly straight forward exercise, assuming the corporation has realistic premium expectations and a risk profile that’s not overly challenging. However when it comes to OTC and micro-cap companies, that risk profile often challenges their expectations. Many companies assume their smaller stature and filing class will yield lower premiums, and while that may be the case sometimes, more often than not, they will find the cards stacked against them from the onset.