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Travelers warns brokers private D&O risk extends beyond shareholder suits
Travelers says private D&O claims can be triggered by disputes with customers, competitors, vendors, suppliers, creditor actions, regulatory investigations, and investor or shareholder matters.
Travelers is warning brokers that private company directors and officers liability, or D&O, risk is broader than many clients assume, extending beyond traditional shareholder litigation. Insurance Business reports that the insurer says the most under-informed companies are often those with the greatest exposure.
According to Travelers via Insurance Business, private D&O coverage can include a wider range of entity triggers than public-company forms, which changes what can initiate a claim. The outlet notes that while shareholder disputes remain part of the picture, insurers also see claim activity tied to other sources.
Travelers’ D&O product manager Alan Bond, as quoted by Insurance Business, said private D&O insurers still see claim activity from shareholder disputes, but also experience a wider range of claims because private D&O forms provide broader entity coverage.
Bond added that claim frequency is driven primarily by disputes with customers, competitors, vendors, and suppliers, along with creditor actions, regulatory investigations, and investor or shareholder related activity.