As companies restructure or streamline their operations, general counsel must manage an ever-broadening array of tasks. One of the many functions migrating into corporate law departments is risk management, including assessing the company’s insurance requirements and purchasing adequate insurance coverage.
At first blush, this can sometimes seem like an odd fit within the corporate law function. However, as discussed below, good risk management is often inextricably intertwined with tasks that are clearly within the province of the legal department. While companies may purchase a variety of insurance policies, the ones most likely to benefit from legal department review include commercial general liability, data privacy and cyber-risks liability, errors and omissions liability, directors’ and officers’ liability (“D&O”) and, in some cases, fiduciary liability and/or employment practices liability policies. An effective risk management strategy will also depend on strong external support from insurance brokers and insurance coverage counsel. For general counsel, the challenge is to effectively delegate various tasks to the correct internal or external service provider.