Countless executives maintain a false sense of security when it comes to their potential legal exposure. Directors and officers liability insurance policies—commonly known as “D&O policies”—are designed to protect management-level employees against allegations of wrongful conduct. The polices do so by covering legal defense costs, and funding settlements or judgments, arising from claims grounded in breaches of duty, neglect, error, misstatements, misleading statements, and other actions or omissions. Although most companies purchase D&O policies, relatively few in the C-Suite pay close attention to them. This is especially true where corporate executives are laboring under the misimpression that they are protected by company-issued indemnification agreements. The opioid crisis has put the pharma industry in the current crosshairs. Directors and officers in other sectors should also take heed—because theirs could easily be the next target of litigation. Inaction is never a viable option when it comes to risk management, and the shift in opioid-related litigation highlights the dangers of complacency.
Click to read the full article: Opioid Crisis Shines Light on Need for D&O Coverage