Bankruptcy Court Allows SVB Directors, Officers to Utilize Liability Insurance

A federal bankruptcy court in New York ruled Tuesday that directors and officers of SVB Financial Group, parent company of the failed Silicon Valley Bank that federal regulators took over in March, can tap into their $210 million in directors and officers liability insurance.

The ruling by the U.S. Bankruptcy Court in New York was issued over the objections of SVB’s unsecured creditors committee.

The primary insurer for the D&O coverage was Chubb Ltd. unit Federal Insurance Co., which had an aggregate coverage limit of $10 million, according to the ruling. Excess coverage in $10 million layers is provided by more than a dozen other insurers, as well as Chubb.