As businesses expand globally and become more complex, the corporate entity(ies) who is ultimately responsible for a company’s environmental liabilities is becoming less clear. In the past, a “corporate veil” protected directors and officers of parent companies from the environmental consequences of a subsidiary’s actions.
However, in recent years, courts have ruled that the corporate veil can be “pierced,” or lifted, exposing parent companies and their directors and officers to liability, public relations crises, and stock price volatility. In most instances, general liability and D&O insurance policies exclude claims arising from pollution liability, adding to potential exposure.
It’s imperative that company executives understand their exposures and their options for mitigating these risks. A well-crafted environmental policy can fill in the gaps, protect directors and officers, and “repair the veil.”
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To discuss your specific needs, please contact Greory Schilz, Executive Vice President on 415-819-6585.