One of the continuing issues in the world of directors’ and officers’ liability insurance in recent years has been the question of when a U.S. company should obtain a separate locally admitted D&O insurance policy for its foreign subsidiaries. In the following guest post, Jane Njavro, Senior Vice President and Partner at Woodruff Sawyer, examines the issues surrounding this perennial question. This article was originally published on Woodruff Sawyer’s D&O Notebook, here. I would like to thank Jane for allowing me to publish her article on this site. I welcome guest post submissions from responsible authors on topics of interest to this blog’s readers. Please contact me directly if you would like to submit a guest post. Here is Jane’s article.Continue Reading Guest Post: Foreign Subsidiaries and D&O Insurance: Are You Prepared to Place?
Most primary D&O insurance policies are written on a global basis, meaning that the policy’s coverage will respond to claims wherever they arise, anywhere in the world. However, in recent years, as a result of tax, regulatory, indemnification, and currency questions, both insurance buyers and insurers have become concerned about the potential need for companies to have locally admitted policies in place in foreign jurisdictions where the companies have operations. The question about whether or not a company should have a local policy has become a perennial issue. In an October 16, 2019 post on Woodruff Sawyer’s blog entitled “Foreign Subsidiaries and D&O Insurance: Are you Prepared to Place?” (here), Jane Njavro takes an interesting look at the issues surrounding these questions. As discussed below, these questions raise a number of recurring concerns.
Continue Reading Do D&O Insurance Policyholders Need Local Policies in Foreign Jurisdictions?
It is axiomatic in the current global economy that every business needs to have a China strategy. Most business enterprises are drawn to the world’s most populous country and second-largest economy. But while China represents an attractive business marketplace, it can also in many respects be a perilous place to try to do business, particularly from a regulatory and compliance standpoint. While most businesses may recognize these challenges, many may struggle to try and address the concerns. A new book entitled “Governance, Risk and Compliance Management in China” (here), which I review below, may provide substantial help to companies trying to address compliance concerns arising from doing business in China. Of particular interest to this blog’s readers, the book includes an interesting chapter on D&O insurance issues in China.
Continue Reading Book Review: Governance and Risk Management in China