How to avoid D&O liability losses
Article Abstract:
Underwriters tend to agree that the best way for corporate directors and officers to reduce the risk of court liability cases is to keep stockholders happy. Establishing a strong corporate direction and communicating it clearly represents the use of a good offense as a good defense. Careful selection and briefing of directors can also reduce director and officer liability risk. Each director should probably consult with a professional financial planner or trust lawyer about tools for shielding personal financial assets. Some new state laws (such as Delaware's) offer legal action protection for directors, but such shields are incomplete. Informing directors of how to minimize risks is one way that the corporate risk manager, treasurer, or CEO can cut the chances that the firm will be named in costly director and officer liability litigation.
Publication Name: Cashflow Magazine
Subject: Business
ISSN: 0196-6227
Year: 1987
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Financing your primary liability coverage cost-effectively
Article Abstract:
There are four basic types of business insurance needs and five different ways to insurance them. The types of business insurance needs are: workers' compensation, automobile liabilities, general or public liabilities, and product liabilities. The basic ways to finance primary liability insurance are: guaranteed cost, incurred-loss retro or paid-loss retro policies, by captive insurance company, or by self-insurance. A way to compare these options is by discounted cash flow analysis. A one-year period should be computed and then extrapolated three to five years ahead.
Publication Name: Cashflow Magazine
Subject: Business
ISSN: 0196-6227
Year: 1988
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D&O liability - new protection
Article Abstract:
Corporate directors face growing exposure to lawsuits. Liability insurance for directors has either become prohibitively expensive or unavailable. Thirty-eight states have created some form of legislation that protects directors and officers from unnecessary court actions. This protection often takes the form of permitting organizational indemnification of officers and directors, and some states have carefully defined decisions made in good faith in order to determine for what kinds of decisions board members can be held liable.
Publication Name: Business
Subject: Business
ISSN: 0163-531X
Year: 1988
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