The reelection of former President Donald Trump this week promises to usher in a starkly different administration and regulatory approach, scrambling the current risk landscape for directors and officers and their insurers.
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Those coverage claims may not directly tie to an alleged securities violation, but instead from costs associated with heightened scrutiny.
"With reduced regulatory oversight and enforcement, shareholders may demand increased transparency from company management," policyholder-side attorney Seth Lamden of Blank Rome said in an email to Law360.
He added that policyholders should explore whether they have coverage for the cost of complying with "books and records" demands, which is not covered by all D&O policies.
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This article was written by Abraham Gross and was published in Law360 Insurance Authority on November 7, 2024.
