Scott Seaman Discusses the Trump Administration's Potential Impact on D&O Liability

Scott Seaman, Co-Chair of Hinshaw's Insurance Services Group in Chicago was quoted in a new Risk Management Magazine story discussing how Trump Administration policies could potentially impact directors' and officers' (D&O) liability and the D&O insurance market. As the Administration continues to enact its agenda and shift regulatory priorities, the insurance industry is expected to be affected as well.

Seaman highlighted the "strong possibility" that the Securities and Exchange Commission's (SEC) rules requiring the disclosure of climate-related information in public company financial filings will be eliminated.* This change would remove directors' and officers' liability for inaccuracies or misrepresentations in their climate emissions disclosures. He noted that such regulatory rollbacks could have profound implications for D&O claims activity.

The article also explored other potential changes under the Trump Administration, including the appointment of more conservative federal judges and the impact of recent U.S. Supreme Court decisions. These developments are expected to create a more favorable environment for directors and officers, potentially reducing the frequency and severity of D&O liability insurance claims.

Read the full article.

• Risk Management Magazine: "Will the Trump Administration Impact the D&O Market?" (March 27, 2025)

*Following the publication of this article, the SEC announced today that it will no longer provide a legal defense of its climate-disclosure rules.