Insurance strategies for investment managers and their lawyers

The second part of a two-part series on insurance strategies for investment managers and their lawyers is presented. Errors and omissions (E&O) and directors and officers (D&O) policies usually give the insurers the right to consent to the selection of defense counsel. The insurer may refuse...

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Bibliographic Details
Published in:The Investment Lawyer 2007-04, Vol.14 (4), p.21
Main Authors: Weisbrod, Stephen A, Heintz, John E, Lavella, Justin F
Format: Article
Language:English
Subjects:
Attorneys
Conflicts of interest
Consent
Contingent fees
Costs
Insurance companies
Insurance coverage
Insurance industry
Insurance policies
Investment advisors
Investment companies
Legal fees
Litigation
State court decisions
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Summary:The second part of a two-part series on insurance strategies for investment managers and their lawyers is presented. Errors and omissions (E&O) and directors and officers (D&O) policies usually give the insurers the right to consent to the selection of defense counsel. The insurer may refuse to pay for any of the lawyer's work performed without the insurer's consent. Many policies require insureds to select defense lawyers from a pre-approved list or "panel." The standard defense cost provision in E&O and D&O policies obligates the insurer to pay defense costs "as incurred." When an investment company or individual adviser is sued or investigated, insurance coverage can be a very valuable asset. But the tail should not wag the dog. The insured's paramount objective is to minimize or avoid civil, regulatory, and criminal liabilities, and then to obtain the fullest amount of insurance coverage afforded under applicable policies.
ISSN:1075-4512