August 6, 2025
Considering D&O Adjacent Risk: The Current State of the FTC and its Impact on D&O Risk Webinar Recap

Our most recent webinar offered essential insights for Directors & Officers (D&O) and professional liability practitioners, focusing on the evolving role of the Federal Trade Commission (FTC) and its implications for executive risk. As regulatory landscapes shift, understanding where enforcement is headed and how it affects corporate leadership has become more critical than ever. The session brought clarity to these developments and equipped attendees with actionable strategies to protect clients and insureds.
FTC’s Enhanced Enforcement Under New Leadership
One of the most pressing topics discussed was the current state of the FTC under the current administration. The speakers outlined how the agency’s leadership is taking a more aggressive stance on enforcement, with increased scrutiny on corporate behavior, particularly among executives and board members. With growing momentum behind consumer protection and competition-focused initiatives, the FTC’s direction signals heightened risk for directors and officers—especially in areas where policies, contracts, or internal controls may fall short.
Non‑Compete Rulemaking in Transition
Another significant area of focus was the evolution of the FTC’s non-compete rulemaking. Attendees learned how recent rule proposals and litigation could dramatically reshape the way companies structure employment agreements. If finalized and enforced, the FTC’s efforts to restrict or ban non-competes will introduce new legal and operational challenges for employers. For D&O practitioners, this creates added risk exposure if companies are found to violate these evolving rules.
Emerging Risks from AI, Privacy, and Consumer Harm
The webinar also tackled emerging concerns around consumer harm, data privacy, and artificial intelligence (AI). The FTC has signaled an intent to regulate deceptive or unfair practices tied to AI use and data collection. Directors and officers must now contend with the potential for claims stemming from algorithmic bias, AI misuse, or privacy failures. These risks are no longer hypothetical and are becoming an increasing focus in both enforcement and litigation.
Proactive Preparation for D&O Investigations
An additional key takeaway was the importance of preparing clients for potential D&O claims tied to regulatory investigations. This means reevaluating coverage adequacy, educating boards on current FTC priorities, and proactively aligning corporate governance with federal expectations. Practitioners were urged to review how FTC enforcement pathways might trigger or overlap with D&O insurance policies and liability exposures.
Significance for Professional Liability Practitioners
For professional liability practitioners, this webinar underscored the urgent need to stay ahead of regulatory risk. The FTC’s expanding authority touches multiple risk areas—employment practices, data governance, consumer rights, and AI ethics—all of which can lead to claims implicating directors and officers. As regulatory scrutiny intensifies, PL professionals play a vital role in guiding clients through this evolving terrain and ensuring risk transfer solutions are properly structured.
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Meet the Speakers
Melea Hargis is a Vice President and D&O Coverage Specialist at Chubb, with over 20 years of experience. She has advanced from positions in private and public company underwriting to Branch Financial Lines Manager. In her current role, she consults with underwriters on key D&O coverage items and coordinates solutions with Chubb’s legal team. Melea holds an economics degree from the College of Saint Benedict/Saint John’s University in Minnesota.
Ruth Kochenderfer is Marsh’s D&O Product Leader and a broker for Marsh’s FINPRO (Financial and Professional lines) practice in Washington, DC. As a broker, she advises clients on the evaluation and design of risk transfer solutions that address financial and professional exposures, including directors and officers liability, errors and omissions, cyber security and privacy liability, employment practices liability, fidelity (crime), employed lawyers liability, and fiduciary liability. Ruth’s clients include publicly traded, as well as private, US and multinational clients in various industries.
Kathleen Benway concentrates her practice on government investigations and litigation and corporate compliance related to consumer protection issues, including privacy, security, advertising, fintech, and consumer financial services.
Kathleen’s experience makes her uniquely positioned to represent clients before the Federal Trade Commission (FTC) and other government agencies. She has over 12 years of senior-level experience with the FTC, including chief of staff to three directors of the Bureau of Consumer Protection (BCP), senior advisor to a former FTC commissioner, and counsel to two BCP directors, providing legal and policy advice across a range of investigations and litigation, rulemaking, and other consumer protection matters. Kathleen led FTC investigations and prosecuted privacy, data security, and unfair and deceptive business practice cases.
Cara Peterman is a partner with Alston & Bird’s Securities Litigation Group. She represents public companies and their officers and directors in securities class actions, shareholder derivative suits, M&A litigation, and other complex commercial litigation. She also regularly represents clients in investigations brought by the Securities and Exchange Commission and other regulators and conducts internal, board-level investigations into alleged corporate misconduct.
Cara additionally counsels corporations and their boards on public disclosure and corporate governance matters, with a concentration on cybersecurity, data-privacy, D&O insurance, and M&A-related issues. Cara is listed in Chambers USA for Litigation: Securities – Georgia and was selected as a member of the Daily Report’s “On the Rise” class in 2021. She speaks frequently on securities litigation trends and executive-level cybersecurity concerns.
News Type
PLUS Blog
Business Line
Cyber Liability, Directors and Officers (D&O), Employment Practices Liability (EPL)
Topic
Professional Liability (PL) Insurance
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