FINEX Global, part of insurance broker Willis Group, has unveiled a new program, Directors' All Risk Cover (DARCSTAR), to eliminate the indemnification uncertainties in Directors & Officers (D&O) insurance.
The program developed by Willis’ financial, executive risk and professional liability business in association with a panel of insurers led by Allianz, QBE and XL.
Willis said the DARCSTAR cuts through the complexities of traditional D&O cover to advance all directors’ costs in the event of an allocation dispute.
According to the Willis, the features of DARCSTAR include: one insuring clause that provides direct access for the directors to insurers, as opposed to three D&O cover clauses.
D&O cover is on a broad ‘all risks’ basis which means that the risk is covered unless excluded, which is different to conventional D&O policies that list several pages of insured perils.
The program also includes a guarantee feature from the insurers that they will not seek recovery from the policyholder for indemnifiable loss; no compulsory deductibles or retentions other than with respect to securities claims and clear triggers for investigation costs cover across a broad spectrum of external and internal investigations and enquiries.
DARCSTAR is the product developed by its executive director, Francis Kean, who, before joining Willis, worked for 25 years as a litigation lawyer specializing in D&O, professional indemnity and financial institutions liability in the London insurance market.
Kean said by removing the complexities of indemnifiable and non-indemnifiable loss, DARCSTAR is the most significant shift in D&O coverage for many years.
"It is designed to promote more transparent claims handling and to provide our clients with a clearer understanding of the insurance they are buying," Kean said.