ACE Bermuda Introduces New Specialized D&O Coverage

ACE’s Bermuda-based subsidiary, Corporate Officers & Directors Assurance Ltd. (CODA) has announced the launch of three new professional lines products aimed at the North American business segment.

Executive VP Professional Lines at ACE Bermuda, Patrick Tannock, stated: “The need for these types of specialized professional coverages is very real today in light of the increasing frequency of partial settlements, in which claims against some but not all of the defendant directors and officers are settled.”

The bulletin noted that “CODA is one of the leading providers of quality directors and officers insurance protection and is recognized as affording the broadest coverage generally available, offering clients up to US$75 million in capacity.”

The Company’s “Premier Directors and Officers Liability Policy form is designed to give comprehensive financial protection to directors and officers when their company fails to indemnify them, or when traditional insurance programs fail to respond,” the bulletin continued.

Highlights of the enhanced CODA Premier Directors and Officers Liability Policy include:
— Separate and additional limit for independent directors if the policy’s standard limit of liability is exhausted;
— Narrowed insured vs. insured exclusion – not applicable to whistleblower activities or claims by creditors committee;
— Expanded notice of circumstances – circumstances need only be reasonably expected to give rise to a future claim;
— Conduct exclusions are amended to preserve more limits for innocent insureds;
— Choice of Arbitration venue broadened to include Toronto and Vancouver as well as London and Bermuda.

The bulletin also explained that the “Independent Directors Policy (IDL) insures only outside directors for non-indemnified loss. This policy is designed to protect the personal assets of outside directors and allow companies to attract and retain the best available directors. The IDL policy in combination with a company’s standard directors and officers insurance program should provide outside directors with sufficient confidence that their personal risks from board service are well managed and contained. The enhanced CODA Premier Independent Directors Policy includes similar enhancements as listed above.

“CODA Premier Officers Liability Policy – CODA is the first insurer to offer this innovative Side A policy which only covers current and former officers of a company. The CODA Officers Liability policy contains all of the coverage features contained in CODA’s Premier Directors and Officers Liability Premier policy, but the policy’s limit of liability is dedicated only for the benefit of officers. Coverage under the policy extends to officers in their capacity as an officer or director of the Company, as well as other employees if the other employees are co-defendants with an officer.”

Rees Fletcher, ACE Bermuda President & CEO, commented: “As the leader in the market we are pleased to launch these new products for the benefit of our clients. Our experienced team of underwriting professionals looks forward to continuing to respond and adapt to the evolving requirements of our clients and the market in which we do business.”

Topics Directors Officers