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Indemnification of general counsel for personal legal fees

An excellent article in Directors & Boards, Vol. 33, Fourth Quarter 2008 at 42, explains why general counsel might want to negotiate a personal indemnification agreement before they take the helm. Corporate bylaws may fall short of protecting them in the event of a claim and D&O insurance has holes. The author, Priya Cherian Huskins at Woodruff-Sawyer & Co.,
recommends supplementing those protections with personal indemnification contracts, especially those that accelerate when legal fees are advanced to the indemnitee.

As I read the article, I wondered how much companies spend under indemnification agreements and whether those outside counsel fees are included in the budget of the law department.

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