D&O Coverage

Nuts & Bolts: The Hartford Financial Services Group Inc. has created Priority Protection, a new D&O product that protects individual directors and officers. The company said Priority Protection is a highly flexible, non-rescindable policy 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 features include the flexibility to choose defense counsel and the “Difference in Conditions” feature, which is available to provide first-dollar protection for non-indemnifiable claims when an individual insured is unable to access D&O coverage due to cancellation of underlying policies, denial of coverage, or if bankruptcy proceedings prohibit the company from advancing defense costs.

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.