XL Insurance (Bermuda) has enhanced its broad form Side A Directors & Officers (D&O) Coverage on an excess difference in conditions basis.
Additional limit of liability for independent directors is provided by the enhanced coverage in addition to Sarbanes-Oxley (SOX) Section 304 and Dodd-Frank Section 954 defence costs coverage.
The two sections impose severe financial penalties if the company financial statements are determined to have been materially inaccurate on current and former corporate executives.
XLIB Professional Lines chief underwriting officer Matthew Irvine said by making the enhancements to ‘Side A’ D&O Coverage, the firm aims to provide its clients with the high level of protection and innovative solutions that they have come to expect from it.
The policy permits, if the insurer is materially prejudiced, to not be asserted as a coverage defence for late notice and the defence costs will be advanced within 45 days.
The Side A D&O Coverage enhancement includes penalties for unintentional violations of Foreign Corrupt Practices Act or UK Bribery Act, violations of law and SOX 308 fines and taxes imposed on the insured by reason of the company’s insolvency.