Multinational corporations commonly purchase a global D&O liability insurance policy in their home country under the assumption that this policy will offer solid protection everywhere in the world. However, the world is changing, and international awareness of D&O liability is expanding. Consider:
- The rising tide of corporate governance reforms
- An increasing number of lawsuits or regulatory actions pursued against corporate boards or officers
- More countries adopting new insurance regulations.
Any of these developments can increase the likelihood of a lawsuit arising that could have a significant negative impact on your company’s bottom line or on the liability of its directors and officers. Additionally, they could challenge the effectiveness of your company’s single-policy approach.