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WSJ News Exclusive | Companies Are Paying a Lot More to Insure Their Directors and Officers

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Driving the increases in rates of directors-and-officers insurance is the rise in shareholder litigation, both in the number of cases and size of jury awards and settlements

Many companies in the U.S. and Australia are paying steeply higher rates for insurance that covers costs for directors and top executives when they or the company are sued.

Driving the increases is the rise in shareholder litigation, both in the number of cases and size of jury awards and settlements, brokers said. Another connected factor is the growth of litigation-finance firms, which invest in corporate legal disputes.

 

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