D&O insurance cover: is a review overdue?

Recent legal developments could mean there is a risk that directors and officers' (D&O) insurance currently in place will contain substantial gaps in coverage and could therefore leave the company's directors and other officers inadvertently exposed to liability. Gillian Eastwood, dispute resolution partner at law firm Freshfields Bruckhaus Deringer, explains

D&O insurance cover: is a review overdue?

The issue of company directors' liability is once again in the headlines with the ongoing High Court trial of Equitable Life's £1.7bn claim against 15 of its former executive and non-executive directors for negligence and breach of fiduciary duties. Even if not found tobe liable, many of the directors will have incurred massive legal costs in defending the claims, while others have been forced to conduct their own defence to the proceedings due to insufficient directors and officers liability insurance cover (D&O insurance) or other protection from the company.