Go tell it—straight to your insurer. A recent Massachusetts federal district court case emphasizes the importance of giving insurers timely notice of all directors’ and officers’ liability claims, according to Courtney Horrigan of Reed Smith.
In Biochemics v. AXIS Reinsurance, the plaintiff was seeking protection under its primary D&O liability insurer for defense costs related to a U.S. Securities and Exchange Commission enforcement action, explains Horrigan. However, the court denied coverage. “Judge Rya Zobel held that Biochemics had no coverage for the SEC enforcement action because it related back to two deposition subpoenas that the SEC served on Biochemics before the AXIS policy incepted,” writes Horrigan.
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