Independent Director’s Liability Insurance

Several insurance companies are now discussing selling coverage directly to independent board members to provide coverage when the corporate D&O doesn’t respond due to government intervention, bankruptcy, or insolvency. Hartford Financial Services Group, Inc. offers a policy called “Priority Protection-IDL.” Chubb Specialty Insurance calls its product “Personal Director’s Liability Insurance.”

Here are the issues to consider if you are going to buy your own D&O insurance:

– What are the policy limits?

– Is there a retention/deductible?

– In what circumstances will the policy pay? Must the corporate directors’ and officers’ policy respond first?

 

 

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