The new policy will serve individual directors and officers in cases where the organisation does not indemnify them
UK-based insurance company Beazley has introduced a new suite of directors and officers (D&O) liability insurance, offering multiple options to non-US domiciled organisations.
Beazley stated that the new suite ranges from a single policy to cover the organisation and its directors through policies that address the specific needs of individuals.
The suite builds on the Beazley’s success of its comprehensive D&O policy that offers cover to directors and officers along with the businesses’ securities-related liability.
The policy will support when underlying D&O cover is exhausted
The company stated that the new policy includes a new ‘Side A difference in conditions’ (DIC) policy, which supports individuals when their employer does not indemnify them.
The cover will support either when limits on the underlying D&O cover are either exhausted or when an underlying insurer refuses or fails to pay a claim within the right time-fame.
Beazley had launched a pared-back working to help brokers and clients see what exactly the policy offers. Rather than restarting all the policy terms, the company’s Side A DIC policy will follow the primary working and will highlight three areas where the cover will differ.
According to the company, there is no fixed time limit for claims notification, the policy will cover reasonably incurred defence costs and the only exclusion will relate to a matter of conduct by the individuals.
The expanded D&O suite will include Side ABC, Side AB, Side A and Side A DIC.
Under Side ABC, comprehensive insurance covering the personal liability of the insured individual, the company’s liabilities when it compensates the individual and the company if faced with securities claims.
Side AB is for private and public organisations that do not need securities-related cover the businesses provided by Side C.
Side A DIC is offered when excess and drop-down cover for individual directors and officers, when the business does not compensate.
Side A is ‘ground up’ cover for individual directors and officers when the company does not compensate.
Beazley international management liability head Catherina MacCabe 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.”