Travelers has added Broad Form Plus+ to its portfolio of directors and officers (D&O) coverages as a way to protect against concerns above and beyond corporate liabilities.
While many companies typically provide protection to their directors and officers for defense costs and indemnity through their corporate bylaws, there are certain instances where a company cannot indemnify. These occurrences can include: settlements or judgments in lawsuits brought by or on behalf of the corporation; when public policy limits indemnification or payment of defense costs is limited under certain federal and state statutes; and when there are no available corporate assets. Travelers Broad Form Plus+ helps protect directors and officers of public, private and nonprofit organizations across a variety of industries against these and other risks.
“Directors and officers may be putting personal assets at risk with every decision they make,” said Jeffrey P. Klenk, senior vice president, Travelers Bond & Financial Products. “Our new Broad Form Plus+ coverage extends protection beyond traditional ABC D&O policies by offering difference in conditions coverage for nonindemnifiable risks.”
Key features of Broad Form Plus+ include:
- Nonrescindable coverage for nonindemnifiable claims against directors and officers, including pre-claim inquiries by regulatory or governmental authorities;
- No exclusions for independent directors and an additional limit of liability for nonindemnified loss of independent directors without a requirement that claims, pre-claim inquiries or custodial detentions be unrelated;
- Difference in condition coverage or protection when indemnification is not available or paid by any other source;
- Automatic six-year extended reporting period for independent directors that cease serving in all capacities within the organization; and
- Coverage for fees and expenses incurred by a director or officer to seek release from arrest or confinement to a residence or custodial facility by law enforcement agencies in the U.S. and abroad, including travel and accommodation expenses for relatives if the detention occurs in a foreign country.
Broad Form Plus+ does not have exclusions commonly found in D&O policies in the industry, such as prior notice, prior or pending proceedings or litigation, bodily injury or property damage, professional services, insured versus insured and the Employee Retirement Income Security Act (ERISA).
Travelers offers a suite of management liability products, including D&O liability, employment practices liability, fiduciary liability, miscellaneous professional liability, crime, cyber liability and kidnap and ransom coverage.