If you serve on a board of directors, this might be important to you.
Several insurance companies are now selling coverage directly to independent board members to provide coverage when the corporate D&O doesn't respond due to government intervention, bankruptcy or insolvency. Hartford Financial Services Group, Inc. offers a policy called Priority Protection-IDL. Chubb Specialty Insurance calls their product Personal Director's Liability Insurance.
Here are the issues to consider:
-What are the policy limits?
-Is there a retention/deductible?
-In what circumstances will the policy pay? Must the corporate directors' and officers' policy respond first?
-Who selects the defense team - you or the insurer?
-Is coverage included for actions brought against a non-director spouse?
-Assuming the policy is a claims made, what are the extended reporting provisions available?
Several insurance companies are now selling coverage directly to independent board members to provide coverage when the corporate D&O doesn't respond due to government intervention, bankruptcy or insolvency. Hartford Financial Services Group, Inc. offers a policy called Priority Protection-IDL. Chubb Specialty Insurance calls their product Personal Director's Liability Insurance.
Here are the issues to consider:
-What are the policy limits?
-Is there a retention/deductible?
-In what circumstances will the policy pay? Must the corporate directors' and officers' policy respond first?
-Who selects the defense team - you or the insurer?
-Is coverage included for actions brought against a non-director spouse?
-Assuming the policy is a claims made, what are the extended reporting provisions available?
No comments:
Post a Comment