Agents frequently insure entities on whose boards they serve. There are inherent conflicts and dangers in this business-building approach. Exercise Caution!
D&O policies are not intended to cover professional services, even though the entity and the employees are insured for their wrongful acts.
I have often cautioned my agents about the unfavorable (from the insured’s and broker’s perspective) broadness of an “arising from” exclusion preamble. There are many exclusions for which this wording is unavoidable, but the impact is horrendous. In the case of insureds that have an incidental or vicarious exposure to bodily injury/property damage claims, unauthorized […]