Security in a Challenging Legal Environment
The plunge in the credit and financial markets, corporate financial accounting scandals, options backdating securities lawsuits, the subprime mortgage crisis, and the proliferation of government investigations and shareholder derivative actions make it more important than ever for corporations and their directors and officers to obtain the security and financial protection they need from their Directors’ & Officers’ liability insurance program. Reed Smith’s Insurance Recovery Group understands the challenges facing policyholders in the current legal and economic climate. We are a full-service law firm, dedicated to working with clients through all phases of the insurance process, from securing the best policy terms during D&O placements and renewals, to the submission and favorable resolution of claims. We also work with our policyholder clients to identify and manage the insurance implications of corporate transactions, such as acquisitions, mergers, divestitures, Sarbanes-Oxley compliance, and insolvency restructurings.
Reed Smith Insurance Recovery attorneys work with clients and their brokers to review and analyze D&O liability insurance programs to assess coverage that may be available for the risks most likely to affect those policyholders. Our clients are varied, and include for-profit and nonprofit corporations interested in maximizing the insurance coverage available to themselves and their officers and directors and board committees, and also to outside and inside directors interested in ensuring that the company’s D&O program protects their personal assets. During the policy placement and renewal process, our attorneys review potential coverages to determine which policy best meets the needs of each insured. At the client’s option, we also participate in negotiations with insurers, either directly or through the client’s broker, to obtain the most comprehensive coverage available that meets each client’s unique insurance requirements.
In the event of a claim, Reed Smith’s Insurance Recovery Group assists the client in analyzing coverage potentially available and giving notice to the applicable carriers. We then aggressively negotiate to secure coverage for the claim. Negotiation (including the use of alternative dispute mechanisms such as mediation) can often resolve insurance issues, including outright coverage denials, without the need to incur litigation costs. But when litigation is necessary, our attorneys effectively advocate in state and federal court, as well as in arbitrations, to obtain the favorable results our clients expect.