Abstract

Corporate decision making is fraught with risk. This especially is true where complex technical issues, such as climate change and alternative energy, are involved. Will available director's and officer's (D&O) liability insurance defend against lawsuits questioning corporate decision making when environmental issues are involved? Most D&O coverage excludes pollution liability in some way. Do these exclusions extend to liability associated with SEC disclosures or garden-variety negligence involving environmental issues? This article reviews and analyzes legal decisions that address these questions and offers tips to assist those managing D&O risk.

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