Guilty D&O May Lose Defense Costs, Indemnification Too

Guilty D&O May Lose Defense Costs, Indemnification Too

In Protection Strategies Inc. v. Starr Indemnity & Liability Co., a Virginia district court allowed an insurer to recoup defense costs paid to its insured in responding to government subpoenas and claims of fraud and conspiracy. Many courts allow recoupment of defense costs or indemnity payments only when contractual remedies exist in a policy for a later-established coverage exclusion, which appears to be a growing trend among courts, says Gregory Hudson of Cozen O'Connor.

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