Public Company
Public company directors and officers face an array of challenges, as they operate in an exceedingly complex environment. Judicial and regulatory scrutiny over corporate governance has intensified as a result of numerous high profile corporate bankruptcies and shareholder litigation continues unabated. Corporate leaders demand formidable protection against personal liability and financial loss.
Many of the allegations facing Directors & Officers involve accounting irregularities and securities fraud. Mergers, acquisitions or divestiture activities also heighten the risk of a potential claim.
While strong governance practices can help reduce a company's exposure, an effective risk management program, including broad D&O coverage, is also essential.
Eligible Business Classes:
No Industry Restrictions
- Fortune 500s, middle market, micro-caps
- US & International domiciled risks, including:
- Insurance Company Cancellations or Non renewals due to unfavorable claims experience.
- Firms facing financial distress and/or bankruptcy.
- Initial Public Offerings, Spin-Offs, and other M&A related risks
- Emerging growth (development stage/ start ups)
- Other Special Situations
Coverage:
Negotiating the correct coverage for the desired level of protection can be involved and requires various carriers and policy forms. Contact a broker to discuss a particular risk.
As a D&O specialist, RFO develops a variety of protection options for the leaders of public, private, and not-for-profit organizations.
- Admitted and non-admitted insurance companies
- Traditional Primary and Excess coverage
- Side A Excess Difference-In-Conditions coverage for preserving personal liability coverage when the company:
- fails or refuses to indemnify a director or officer.
- is sued along with the directors and officers, and the D&O policy limits are eroded or consumed by the policy's entity coverage.
- is financially unable to indemnify its directors and officers against claims made against them.
- is prevented by law (domestic or international) from indemnifying its directors and officers for the particular claim at issue.
- Coverage for Investigations:
- Initiated by a broad array of enforcement authorities including the U.S. Securities and Exchange Commission, the U.S. Department of Justice, enforcement units of securities exchanges and similar authorities worldwide.
- Triggered by self-reporting
- Into financial, proxy and other required disclosures of companies with public securities as well as insider trading.
A service is available from certain carriers to facilitate compliance with local insurance and premium tax requirements outside the U.S.
Applications:
D&O Application- Basic stand alone coverage
Side A Excess DIC (All States except NY)-stand alone policy
Side A Excess DIC (NY only)-stand alone policy
Investigation Costs Application-stand alone policy
ARTICLES
Cornerstone Reseach-Securities Class Action Filings 2012 Mid-Year Assessments
Shareholder Derivative Suits: A Growing Concern for Corporate Directors and Officers
D&O Claims Trends: 2012 Wrap Up
Other Coverages:
All or most other coverages that comprise the Hull & Company, Inc. (RFO) practice are appropriate. Contact a staff broker to discuss a particular account.
All insurance product and/or coverage descriptions are informational only. It is neither an offer to sell nor a solicitation to purchase any particular insurance product. Coverage may not be available in all jurisdictions.