RLI Enhances Directors & Officers Liability Policy

RLI Insurance Co.’s RLI Executive Products Group has enhanced its Executive Plus Side A Difference in Conditions (DIC) Directors & Officers Liability policy.

The Executive Plus policy protects the personal assets of directors and officers when the corporation cannot or will not indemnify or when other underlying insurance is nonexistent or has been exhausted. The new policy includes several coverage enhancements, such as:

• Reinstated limits: Allows up to two reinstatements of limit of liability.
• Underlying limits exhaustion: Recognizes exhaustion of underlying limits when underlying insurer(s), entity, or any other source pays loss.
• Expanded definition of claim: Loss now includes any cyber claim.
• Expanded definition of insured persons: The definition of insured persons include members of an advisory board or management committee as well as shadow or de facto directors.
• Exclusions: The single policy exclusion is the conduct exclusion with financial profit being the trigger. Exclusion requires final non-appealable adjudication adverse to the Insured Person. No knowledge or wrongful act of any insured person or entity will be imputed to any other insured person. All other exclusions have been removed.
• Defense expenses: Defense expenses have been expanded to include defense, investigation or appeal for Section 304 of SOX, Section 201 or 954 of Dodd-Frank, and Food/Drug/Cosmetic Act claims. Covered defense expenses will be advanced no later than 60 days.
• Discovery period: Insureds have 90 days after the end of the policy period to elect the discovery period.

RLI is able to offer both primary and excess coverage, written as dollar-one coverage or primary Side A DIC above a tower of traditional D&O coverage, with limits up to $25 million. Specific terms and conditions of policy coverages are provided in the insurance policy documents.

RLI is a specialty insurer serving diverse, niche property, casualty and surety markets. The company provides deep underwriting expertise and superior service to commercial and personal lines customers nationwide. RLI’s products are offered through its insurance subsidiaries RLI Insurance Co., Mt. Hawley Insurance Co., and Contractors Bonding and Insurance Co.

Topics Directors Officers