XL Insurance has enhanced its broad form “Side A” D&O Coverage on an excess difference in conditions basis. It provides an additional limit of liability for independent directors, defense costs coverage for Sarbanes-Oxley (“SOX”) Section 304 and Dodd-Frank Section 954, which impose severe financial penalties on current and former corporate executives if financial statements issued by their company are determined to have been materially inaccurate. In addition, defense costs will be advanced within 45 days, and the policy allows for late notice to not be asserted as a coverage defense unless the insurer is materially prejudiced. Within the definition of loss, enhancements include the express inclusion of fines for unintentional violations of law and SOX 308 fines, unintentional violations of Foreign Corrupt Practices Act or UK Bribery Act, as well as taxes imposed on the insured by reason of the company’s insolvency.
The Professional Lines unit provides directors & officers liability, employment practices liability and errors and omissions insurance to large corporations in a range of industries.