Fraud Insurable Under D&O Policies says Delaware Supreme Court

In a decision likely to transform D&O policies across the nation, the Delaware Supreme Court held that fraudulent conduct by corporate officers and directors is insurable under Delaware law. RSUI Indemnity Company v. Murdock, 2021 WL 803867 (Del. March 4, 2021). The court also held that Delaware law governs a coverage dispute under a D&O policy issued to a Delaware company, even though the policy was negotiated and issued in California, the company is headquartered in California, and its officers and directors live and work in California.