Directors & Officers (D&O) insurance is intimidating and confusing. Our job as your insurance broker to is have a thorough understanding of the nuances, so you don’t have to. You should, however, be mindful of the market influences that make D&O insurance an evolving subject:

• Artificial intelligence (AI) exposures— AI technology is fascinating, and here to stay, but it carries unique risks. If AI systems are implemented incorrectly, these tools could produce widespread errors. In these instances, stakeholders may hold senior leaders accountable for AI-related failures, prompting costly lawsuits and D&O losses.
• Environmental, social and governance (ESG) issues—Senior leaders have recently been held more accountable for upholding corporate commitments to ESG initiatives by stakeholders, regulators and the public, fueling increased litigation against such leaders and associated D&O claims. Climate change has been the main focus of current ESG-related litigation, which alleges that senior leaders have not fully disclosed the material risks of climate change.
• Cybersecurity concerns—Decisions made by senior leaders are often intensely scrutinized following cyberattacks. Possible D&O losses can arise from allegations such as senior leaders failing to implement controls to detect and prevent cyberattacks and report incidents or notify the appropriate parties. Amid increasing ransomware threats and rising digital warfare exposures, cybersecurity has become a worldwide D&O concern.

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