If you have not yet seen it, you will want to be sure to read the January 29, 2020 Harvard Law School Forum on Corporate Governance post entitled “Challenging Times: The Hardening D&O Insurance Market” by Carl Metzger and Brian Mukherjee of the Godwin Proctor law firm (here).
As Carl and Brian point out, the D&O insurance “is becoming increasingly challenging to purchase and maintain. Premiums and deductibles have been increasing, sometimes dramatically, and some insurers are cutting back on the number of companies they insure, causing the supply of insurance to lag behind demand.”
The authors review what is causing the hardening market and what the impacts of the harder market are. They also suggest that in order to deal with the hardening market, policyholder should get out in front of their insurance renewals well in advance of the renewal date, and that some policyholders will want to consider alternative structures.
I encourage everyone to read Carl and Brian’s article.