It is reported that poor corporate results, even bankruptcy, may not deter lawsuits against failed and failing corporations. Instead, their Liability Insurance Coverage may be at risk from claims by shareholders against the insured corporations. Jonathan D. Glater, "Financial Crisis Provides Fertile Ground for Boom in Lawsuits" p. B1, col. 2 (New York Times Nat'l Ed., Business Day Section, Saturday, October 18, 2008).
What is not mentioned in this otherwise insightful report is that there are other types of Insurance Coverages held by failing corporations. Claims on certain other kinds of corporate Insurance Coverages are anticipated to rise besides Liability Insurance Claims, including Claims under Director's and Officer's Coverage.
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