Lynda A. Bennett, Chair of the Insurance Recovery group, addresses the current D&O insurance market, the most important provisions in a D&O policy, the most common mistakes that banks make regarding D&O insurance, and how banks may achieve the best possible insurance coverage on Calling All Bank Directors: What You Need to Know Before Your Bank Renews Its D&O Insurance, Part 1, the podcast of the American Association of Bank Directors.  Bennett calls the discussion especially timely as, in her 26 years of practice, she has never seen such a volatile D&O market for bankers and bank directors, as well as for other companies in other industries.

“The market is incredibly in flux, premiums are skyrocketing, self-insured retentions are going up, capacity in the market is shrinking and particularly drying up in certain industries where it is difficult to keep the full tower of coverage that you have and in some instances to stay with the same carriers that have historically been part of your insurance program; and last, we have also seen a restriction in terms, and that is very specific to the banking industry, as insurance companies are taking a very careful and hard look at the scope of coverage that they’re going to provide for regulatory investigations and other informal inquiries conducted by governmental officials.” She adds that COVID-19 has made all these issues even more acute, so it is critically important that companies with coverage coming up for renewal reach out to insurance professionals in order to be prepared for a detailed underwriting process that could be “potentially painful.”