New York Court Requires D&O Carrier to Cover Organization’s Cost of Subpoena Compliance

January 31, 2014
Harter Secrest & Emery LLP

Government investigations impose tremendous costs on organizations. In simply responding to a subpoena, organizations may incur substantial attorneys’ fees and electronic discovery fees, ranging from many thousands to many millions of dollars. Organizations sometimes overlook their insurance policies as a source to recoup these costs. Moreover, even organizations that review their policies may misconstrue the full scope of coverage under common policy terms. A recent appellate decision in New York serves as a useful reminder that organizations should always review their directors and officers policies, as those D&O policies may cover the costs of responding to government subpoenas.

click here to continue reading (PDF)