Excess Policies are an Essential Element of Management Liability Insurance Programs

Excess Follow Form InsuranceRecent economic and financial reports show the average settlement value of securities class action lawsuits and other management liability litigation settled during 2013 increased substantially and surpassed the average value for the previous five years. The reports also suggest a correlation between significantly higher settlement amounts and a related action brought by the Securities and Exchange Commission (SEC). Given the increased focus on examinations and enforcement by the SEC in recent years, companies should anticipate expenses associated with defending and settling management liability litigation to continue to escalate in the future. Companies involved in such litigation have turned to excess insurance policies as an essential component in the resolution of management liability insurance claims. Read More