Personal Director's Liability Insurance

Independent Directors of Corporations are deeply concerned with the quality and extent of protection they may have through the corporate Directors and Officers Liability Policy being purchased by the corporation. Directors can purchase their own personal Director's Liability Protection to alleviate and mitigate their risk exposures.

Corporate Directors and Officers Insurers are more careful in their underwriting, adding more limitations and not offering as much limit as they may have in years past. These limitations and lower limits further dilute the available coverage that is needed to protect the Director's personal assets.

Almost every week we read how another problem has arisen with a company resulting in greater risks for the Directors. There are increasing negative trends directed toward corporate governance and those who are the Directors of the corporations. Many companies are trying to address this trend by reconfiguring their boards to reflect the talent and ability necessary to provide better governance for the organization. Having quality D&O coverage is a vital component to attract the talent. The personal Directors Liability Insurance Policy will greatly assist the corporation in their effort to improve the board.

Special Coverage features include:

• Solely designed to protect the insured person
• Covers your activities for all Boards you participate on including publicly traded, privately owned and not for profit organizations
• The Directors Last Line of Defense
• No retention
• Excess over the Corporate Policy
• The coverage Drops down if the Corporate Policy is unable to provide Coverage and your policy does
• You are free to choose your own defense counsel
• Your spouse is covered
• High limits are available
• Separate Side A Coverage

An area of concern for the Independent Director:

• The Corporate D&O policy is not collectable due to unavailable indemnification, the insurer is financially unable to pay, the coverage was rescinded, a non-severable warranty exclusion is applied or the underlying policy is deemed part of a debtor's estate by a bankruptcy court or the limits of liability were exhausted

For more informaion, please contact David Wood, President, or Jodie Cole, Senior Vice President

Download an application here