Recent legislation expected to be signed into law by Delaware’s governor amends the state’s General Corporation Law to expressly allow the use of captive insurance companies to fund a Delaware corporation’s directors and officers insurance coverage. What are the implications?
Cooley’s Insurance Practice anticipates that, assuming that the new legislation is signed into law, more Delaware corporations will consider using captives to fund coverage of D&O risk, an alternative that may be especially appealing in light of the current “hard” D&O insurance market, in which companies seeking D&O coverage face capacity and pricing challenges. To learn more about the new legislation, see this terrific Cooley Alert, Delaware Set to Expand Use of Directors and Officers Captive Insurance, from our Insurance Practice Group.
