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According to John Green (no relation to Meg), a partner and insurance attorney in the San Francisco office of Farella Braun + Martel, a company's directors and officers are at risk for claims that they failed to adequately disclose to sharehomers the potential impact on the company of future costs of regulatory requirements or operational changes. This obviously is helpful to protect the company's assets, but it also helps protect directors and officers when a company lacks sufficient assets to fulfill its indemnification obligations. The purpose of this type of insurance is to provide defense and indemnity to directors and officers in lawsuits filed by third parties. |
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