XL Catlin has introduced a new directors and officers (D&O) excess side A Difference In Conditions (DIC) policy for brokers and clients undertaking mergers and acquisition deals in Bermuda.
The new policy features coverage enhancements, including reinstated limits, insured persons, pre-claim inquiry costs and discovery periods.
XL Catlin offers two reinstated limits of liability for unrelated claims, first is for all insured persons and the second is specifically designed for the directors of the parent firm.
The policy has added several insured persons to the policy, including shadow and de facto directors, advisory board members, prospective directors and representatives of entity directors.
Non-officer employees have been included as insured persons for securities and cyber claims.
New product also offers an automatic six-year discovery period, if the policy is called off or non-renewed after the beginning of firm’s bankruptcy proceeding.
If the policy is ended without the firm purchasing similar replacement coverage, an automatic perpetual discovery period is added for former insured persons.
Without considering the size of the subsidiary, the insured persons of all new subsidiaries will be covered prospectively.
XL Catlin’s Bermuda professional lines chief underwriting officer Matthew Irvine said: "Based on our many years of exemplary Side A underwriting and claims handling expertise, we now offer a creative new lead Side A DIC policy which addresses the recent and foreseable changes in the D&O claims environment and D&O insurance market.
"For example, the aggregate capacity offered by a consolidated carrier may be less than the separate capacities offered by each of the carriers before the consolidation. In that case, new insurers will need to be added to programs in which both of the consolidated carriers participated."
In September, XL Catlin introduced a new commercial crime insurance policy in the US, allowing the businessess to recover from the financial backlashes of corporate crime.
Image: XL Catlin has launched new directors and officers (D&O) excess side A Difference In Conditions (DIC) policy. Photo: courtesy of Stuart Miles/ FreeDigitalPhotos.net.