Hunton Insurance Recovery Blog

As 2025 unfolds, executives in the banking and financial sectors are navigating a broad spectrum of risks, including regulatory actions and lawsuits from shareholders and employees. To safeguard against these challenges, executives may rely on directors and officers (D&O) liability insurance. Although D&O insurance policies can offer critical protection, their effectiveness often depends on the specific language negotiated, which varies materially between insurer and policy.

In a recent article in The Review of Banking & Financial Services, partner Geoffrey B. Fehling and associate Alex D. Pappas examine ten common D&O policy exclusions that insurers might invoke to deny coverage. They also offer practical advice for executives about how to minimize the impact of these common policy exclusions.

Officers and directors must constantly navigate new and emerging risks, and that trend will continue in 2025. Ever-growing use (and misuse) of artificial intelligence, increased geopolitical risk, boardroom fallout following cybersecurity incidents, a new administration in the White House, and many other factors point to another eventful year for D&O exposures. Ensuring adequate protection for company leadership is more important than ever to attract and retain top talent.