Directors and officers liability and D&O insurance are unique & complex areas of the law which require special consideration & handling. D&O claims challenge the conduct of senior executives and board members at public & private corporations, as well as not-for-profit organizations. Historically, D&O claims against public corporations have been a function of significant fluctuations in stock price which oftentimes involve irregularities in the company's financial reporting. In some instances, D&O claims attack business strategies, corporate philosophies and management styles. D&O claims can involve highly publicized situations, such as Enron, in which the financial wherewithal of the corporation, its employees & investors are totally at risk. Directors and officers, and corporate liability insurance products address these exposures and are a key component of any company's risk management plan. The legal environment continues to evolve in the wake of the many financial restatements, corporate governance under the Sarbanes- Oxley Act and the enhanced role of the Securities and Exchange Commission in protecting public investors. With the exposures presented by securities class actions at catastrophic levels, the D&O insurance product and the marketplace continue to evolve.