View this article online: https://www.claimsjournal.com/news/national/2007/01/10/75760.htm
The Chubb Group of Insurance Companies has introduced specialized directors and officers (D&O) liability insurance for publicly traded companies with market capitalizations of $100 million or less. These “micro-cap” coverage enhancements can be added to Chubb’s D&O liability insurance policy. Moreover, some small public company customers may also be eligible to receive Chubb’s new Non-Rescindable Endorsement.
“A D&O liability lawsuit, including settlement, judgment and legal expenses, can cost millions of dollars. This could be financially devastating, especially for a small public company,” said Tony Galban, worldwide underwriting manager for directors and officers liability insurance business for Chubb Specialty Insurance. “Many small public companies are recognizing their growing need for quality D&O coverage from a financially strong insurer. The micro-cap coverages bring the company’s D&O coverage up to the levels needed in today’s litigious marketplace.”
Micro-cap D&O coverage highlights include:
* Independent directorship liability, which may help a company attract, retain and protect outside directors by offering up to an additional $1 million of coverage outside the D&O liability insurance policy limit for independent directors.
* Amended exclusionary conduct wording that requires final adjudication to establish fraud and illegal personal profit.
* A definition of “claim” enabling the policy to be triggered if an insured person is investigated by the Securities and Exchange Commission, U.S. Department of Justice or similar regulatory or law enforcement authority.
Chubb’s new Non-Rescindable Endorsement is designed to preserve coverage for directors and officers by providing full severability and is completely non-rescindable for all D&O policy insuring clauses.
Source: Chubb