Confirm You Are Covered

By C. John DiSimone and Michael L. Rich

Chief financial officers and other executives sometimes face personal exposure as a result of the corporate leadership roles they hold. Plaintiffs often sue not only the company, but also the company's leaders, including its CFO. While not all suits against companies and their executives succeed, executives still face the possibility of an unfavorable judgment. Even meritless suits accusing CFOs of wrongdoing or responsibility for claimed business losses have to be defended, and such defenses are rarely inexpensive.