Travelers Bond, a division of Travelers Property Casualty Corp. has unveiled Broad Form PLUS+(SM), a new policy that offers personal asset protection for directors and officers when primary coverage and/or indemnification cannot or will not respond. Designed to meet the current needs of directors and officers, the new policy combines comprehensive coverage features and specialized claims handling expertise.
Broad Form PLUS+ provides coverage for non-indemnified claims (“A-side”) against directors and officers, and includes Difference in Conditions (DIC) drop down features not present in most other policies. This claims made reimbursement policy drops down to fill key coverage gaps that result from typical exclusions in most primary public company Directors & Officers (D&O) policies.
“Now, more than ever, the personal assets of directors and officers are at risk,” stated Jeffrey Klenk, senior vice president for Executive Liability at Travelers Bond. “Policies once intended to protect directors and officers have become more of a corporate balance sheet protector, often leaving individual directors and officers unprotected when large securities claims against the corporate entity deplete the policy’s limits.”
Not only does Broad Form PLUS+ provide protection when primary coverage refuses to perform in a timely manner – or will not respond at all – but allows the flexibility to elect coverage for all directors and officers of a corporation or for individual directors or officers for their service on the boards of one or more companies.
The policy also includes employment practices liability protection for directors and officers who are named defendants in litigation brought against the company.
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