D&O insurance policies: is a deduction of defense costs from the sum insured effective?

Wednesday, February 6, 2013 Veröffentlichungen

Article by Dr. Mark Wilhelm and Christian Becker in Versicherungspraxis 02/2013

In case of D&O damages due to alleged breaches of obligations, the asserted claims and the defense costs often exceed the manager’s assets by far.

Insurers seek to limit their obligation to perform in D&O cases among others by deduction clauses. The insurer thereby deducts the defense costs from the agreed sum insured.

The article at hand discusses whether the designated deduction of defense costs from the sum insured is effective.

 

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