Bad News for D&O Insurers?July 31, 2011 – In The News
As lawsuits and allegations continue to build against News Corp., questions are mounting about the company's financial liability and how much is at stake for its professional liability insurers.
The phone hacking scandal has spurred a number of investigations and lawsuits against the media giant and its directors and officers -- the first of which have been filed by hacking victims and shareholders.
Any litigation filed so far is only the "tip of the iceberg," said Scott Vernick.
Defense costs could be rather large for the company, which is sure to have more litigation brought against it as investigations continue to develop. Some say it is unlikely that D&O insurance will be sufficient to cover all the costs stemming from the scandal.