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The increasingly litigious nature of society and corporate life means that a robust D&O policy is now critical for companies wishing to recruit quality staff. But formulising the right policy with the right covers and terms and conditions is equally important – for the sake of both the insured and the company buying the coverage, Dav Khalaghizadeh, head of Commercial D&O, at Aspen Insurance, tells Intelligent Insurer.
For those executives leading the world’s biggest companies, corporate life has never been more hazardous in terms of the risk to personal reputation that increasingly onerous levels of regulation and corporate responsibility represent.
New and tougher rules mean that board members are under a constant and increasing threat of being sued, be it by shareholders, customers or employees. The chance of any litigation succeeding is higher than ever before given greater clarity over the roles and accountabilities of those that run companies.
The reputational risk for some potential directors is such that they will only sign up if they feel that the company has suitable D&O insurance in place, so that in the event of litigation they get the best possible protection.
D&O, Insurance, Dav Khalaghizadeh, Aspen Insurance, North America, Europe