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When a lawsuit hits a company or its directors and officers, the most common question on in-house counsel’s lips is, “Do we have the right amount of insurance?” Companies often obtain the “right” amount of insurance coverage based on potential exposure to particular types of claims, with the goal of balancing the total amount of insurance (both primary and excess) against the cost of coverage. However, the amount of coverage, while important, is not and should not be the predominant question. If a company’s insurance coverage is not structured correctly, the level of coverage may prove to be irrelevant when addressing a live claim. Recent cases bear this out.