Coverage for ​“Non-Traditional” Defense Costs Arising from the Financial Crisis

This article discusses how the financial crisis of 2008 led to a wave of federal and state investigations into events that gave rise to the crisis. This spawned shareholder derivative suits and other private litigation. The article explains the applicability directors and officers (D&O) insurance, analyzing two major courts of appeal cases: MBIA v. FIC and Office Depot, Inc. v. National Union Fire. The article concludes with recommendations for policyholders based on these cases and suggestions on maximizing coverage and purchasing insurance.