ABSTRACT
D&O policies are complex documents which usually form part of the blanket or umbrella cover put in place by a company in order to protect against potential financial exposures. D&O carriers are usually reluctant to offer cover for pure contractual liability. One effect of this category of exclusion is to confine D&O cover to claims against a company’s directors in tort resulting from failure to exercise due care and skill in performance of their duties. Modern companies are complex structures in both size and structure. They are difficult to manage and control, requiring appointment of a number of individuals with wide powers. The interaction of corporate insolvency scenarios and D&O policy insured vs insured exclusions has attracted attention of many practitioners and has been the subject of a number of proceedings in the USA. In the UK the company is required by law to hold employer’s liability insurance and also may be expected to take out general public liability cover.
