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Issue 1 Volume 1 Summer 2004 |
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 Worldwide Financial Services is very pleased to present our first issue of Executive Liability Alert. Each issue will discuss news, trends and events that affect the financial & professional insurance marketplace including D&O Liability, Employment Liability, Errors & Omissions and Mergers/Acquisition solutions. Many of our articles will be written by guest authors who are experts in various fields such as corporate governance, law, finance, etc. We trust that you will find the information to be interesting and thought provoking. If you are interested in contributing to our newsletter, please let us know. Also, please let us know if you have a topic that you would like to see addressed by an expert. Email us here. |
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| Cutter & Buck D&O Rescission Case Holds Significant Ramifications | ||
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While Tyco, Global Crossing, Adelphia and even Martha Stewart have garnered nationwide headlines during the past several months, an announcement by a Seattle court judge to uphold a D&O insurer's rescission of its D&O insurance policy holds significant ramifications that could be felt long after several of the aforementioned cases have settled. At a minimum, the decision underscores once again how critical it is for directors and officers to understand the policy language inherent in their D&O contracts. Unfortunately for most, this understanding is not realized until after they are named in a multi-million dollar shareholder suit. Only then does a true “reality check” take place. |
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Key Approaches to Capping Existing Liabilities |
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The ability to “cap” or transfer existing liabilities on the balance sheet to a third party (i.e., an insurance carrier) is a financial risk strategy that is once again gaining popularity and is increasingly being used by both public and private companies to manage balance sheet risk. Simply put, this “insurance for burning buildings” serves to create certainty in an otherwise uncertain environment. While these “capping” structures can cover many types of litigation, the most popular typically include securities class action lawsuits, environmental, employment and general liabilities. |
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This newsletter is a production of The Newsletter Place |
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