D & O queries common from boards: survey.

• Author: Marshall, Jeffrey
• Position: Boards of directors and officers - By Tillinghast business of Towers Perrin

Liability is a paramount issue for directors these days, and for good reason. So, perhaps it's surprising that just half of all public and private companies have received directors and officers (D & O) liability insurance inquiries from their board members, according to the D & O Liability 2005 Survey on Claims and Insurance Purchasing Trends conducted by the Tillinghast business of Towers Perrin.

In addition, approximately 30 percent of nonprofit respondents have also received similar inquiries from their boards. In response, 19 percent of public companies made changes as a result of inquiries--though that percentage drops sharply to just 5 percent of private and 2 percent of nonprofit respondents.

Tillinghast's survey, which included 2,694 participants, is its 28th in a series of studies on D & O liability claims and insurance purchasing trends.

"The inclusion of directors and officers' personal assets in the Enron and WorldCom settlements accelerated the number of inquiries from boards," said Elissa Sirovatka, principal at Tillinghast. "Board members now recognize their accountability and are questioning their own levels of coverage."

The good news for companies is that premiums are...