Move fast on D&O, lawyers tell clients

Email Print

1 December 2008

Law firm Clayton Utz is urging clients to review and lock in their directors’ and officers’ (D&O) coverage before the market hardens and policy terms are tightened.

Partner Mark Waller says anecdotal evidence suggests “a rash of shareholder actions and other litigation arising from the economic crisis” is leading to a hardening of terms and prices for D&O cover.

“While there is currently capacity in the market, there are clear signs of a tightening arising from recent renewals,” he said.

“On current indications the 2009/10 renewal process may start to see a reversal of the current trend of broadening policy terms, to a more restrictive approach to policy wording negotiations.”

Mr Waller says some leading D&O insurers have shown a willingness to negotiate favourable terms. “Now may be the opportunity to review and lock in terms before the hard market gets into full swing.”