Nuts & Bolts: The Hartford Financial Services Group Inc. has created Priority Protection, a new D&O product that protects individual directors and officers. Lawsuits are generally filed against the company and its key executives. Defending the company, however, can exhaust policy limits so personal assets are potentially left vulnerable. Also, a traditional D&O policy can be considered an asset of the company during a bankruptcy proceeding, so there may be no protection available for the directors and officers. The Hartford’s Priority Protection is designed for public and private organizations of all sizes. It can be purchased to supplement a traditional D&O policy or by itself.
Severability of the application and the conduct exclusions preserves coverage for “innocent” insureds by not imputing one individual’s knowledge to another. The “non-rescindable” language ensures that the insurance remains in place throughout the policy term. A broad definition of “claim” includes coverage for written demands for civil and criminal proceedings, formal administrative or regulatory proceedings, such as target letters from investigative authorities; and subpoenas from the U.S. Securities & Exchange Commission.
Other provisions include the flexibility to choose defense counsel and a Difference in Conditions feature.
Dollars: Premiums and deductibles/retention vary. Limits up to $25 million.
Carrier: The Hartford, rated “A+,” admitted.
States Available: Most states.
Contact: Patricia Fitzgerald, (212) 277-0457 or www.patricia.fitzgerald@thehartford.com.
To submit information for this department, e-mail: bwells@insurancejournal.com.
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