Insurers of directors backdating claims face
This concern could be particularly apparent in the bankruptcy context, where creditors and others may seek to impose liability on the company’s executives, at the very time when the company itself is unable to indemnify them and to help with their legal expenses.In these circumstances, D&O insurance can represent the individuals’ last line of defense.C=c80dfef620334df18482a43003766fc6&URL= Tnt12n7c Jb ZEo KR. Depending on how you look at it, it could appear that all the money will be used to pay lawyers, on the plaintiffs and defense side.You see, Broadcom is liable for a whopping 0 million in attorneys' fees racked up by the 19 officers and directors caught up in backdating charges, including two who face criminal counts."[The insurers] disputed whether they owed anything," he said.
As Chubb noted in its 2016 private company risk management survey report, more than a quarter of all companies reported having experienced a claim in the three preceding years. Among companies responding to the survey that do not buy D&O insurance, the average reported loss was almost 0,000.The 8 million that Broadcom will receive--which is coming from its D&O insurers under a settlement--will be eaten up by the .5 million fee for the plaintiffs' lawyers and this 0 million-plus defense tab.