ACE Europe announced the launch of the “Elite IV Entity Extension,” an endorsement to its Elite IV Directors & Officers (D&O) cover, which provides increased protection to private companies facing heightened exposures as a result of the recently introduced Corporate Manslaughter and Corporate Homicide Act 2007.
The legislation has caused concern in the UK’s business community. The new law mandates that organizations and senior management can be found guilty of corporate manslaughter as a result of a gross breach of the general duty of care created by a failure in their health and safety systems. Marsh has scheduled a number of “workshops” on the legislation (See IJ web site – https://www.insurancejournal.com/news/international/2008/03/19/88366.htm).
ACE said the endorsement “provides up to £1 million [$1.97 million] protection for the insured company, in addition to that provided to the directors and officers.” ACE also noted that “for many small to medium sized companies this protection is vital in providing better security to the directors, officers and employees who are likely to have a substantial financial interest in the company.
“The extended cover includes protection for claims of wrongful acts committed by the company. In addition, cover is also extended to include legal expenses in respect of corporate manslaughter, corporate homicide and health and safety investigations.”
ACE also noted that with the “introduction of Publicity Orders, which require organizations to publish details of their convictions,” The Company will “provide cover for public relations expenses that can be used to limit the damage of negative publicity on an organization’s reputation, specifically as a result of prosecutions under the Act.”
Dan Holloway, ACE’s UK D&O Product Manager explained: “The Act makes it easier to bring lawsuits against organizations. As a leading D&O insurer, ACE believes it is time to respond to ensure that our insured’s are not left unnecessarily exposed. This extension has been developed to offer broad and effective protection for the insured entity in addition to the cover we provide to the directors and officers.”
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