Running a modern business isn’t easy and one of the things can derail your plans is legal action against board level staff. It can also have a knock-on effect in terms of reputatioal damage to a big brand, so it is worth thinking about getting expert advice when it comes to Director cover;
Specialist insurer Beazley has introduced a flexible suite of directors and officers (D&O) liability insurance that provides multiple options to meet the needs of organisations and senior individuals.
The suite ranges from a single policy to cover the organisation and its directors, through to policies addressing the specific needs of individuals. Using clear and concise wordings, the suite builds on the success of Beazley’s comprehensive D&O policy (‘Side ABC’), which covers directors and officers along with the organisation’s securities-related liability.
Included is an innovative ‘Side A Difference in Conditions (DIC)’ policy, which insures individuals when their employer does not indemnify them. The cover responds either when limits on the underlying D&O cover are exhausted or when an underlying insurer refuses or fails to pay a claim within the correct timeframe. Beazley has introduced a pared-back wording to help brokers and clients see exactly what the policy covers. Rather than restating all of the policy terms, Beazley’s Side A DIC policy simply follows the primary wording and highlights the three areas where cover differs:
- There is no fixed time limit for claims notification
- Reasonably incurred defence costs are covered by the policy
- The only exclusion relates to matters of conduct by the individuals concerned.
The expanded D&O suite includes the following policies:
- Side ABC: Comprehensive insurance covering the personal liability of the insured individual, the company’s liabilities when it indemnifies the individual and the company if faced with securities claims
- Side AB: For private and public organisations that do not require the securities-related cover for the company provided by Side C
- Side A: ‘Ground up’ cover for individual directors and officers when the company does not indemnify
- Side A DIC: Excess and drop-down cover for individual directors and officers when the company does not indemnify.
Catherina MacCabe, Beazley’s head of international management liability, said: “The risks that organisations and their leaders face are changing all the time and they need insurance that responds accordingly. Those in senior positions want reassurance that there is cover in place that will provide protection in the event of a liability claim or regulatory investigation. Our D&O suite provides organisations and directors with a range of policy options with simple, clear wordings to ensure brokers and clients know their cover meets their specific D&O liability needs.”
These policies are available to non-US domiciled organisations and offer limits of $25m. Beazley also has a well-established range of D&O covers for US-based businesses.