View this article online: https://www.insurancejournal.com/news/national/2006/05/23/68753.htm
Navigators Pro, a division of Navigators Management Company, has introduced the IPO InNAVation coverage endorsement to its primary directors’ and officers’ (D&O) liability policy.
IPO InNAVation increases security and certainty to directors and officers of corporations filing for an initial public offering (IPO) under their D&O coverage by providing enhanced protection from a securities class action lawsuit. In addition to the coverages already provided under the policy for alleged violations of the Securities Exchange Act of 1934, the Sarbanes-Oxley Act of 2002, any similar state securities laws, and administrative actions brought by the Securities and Exchange Commission or any similar state regulatory agency, the IPO InNAVation endorsement to the primary Navigators Pro D&O policy protects directors and officers for covered loss alleging civil violations of Sections 11 and 12 of the Securities Act of 1933.
The IPO InNAVation endorsement is underwritten by Navigators Insurance Company and NIC Insurance Company, which are both rated “A” (Excellent) by A.M. Best.
Coverage for securities claims is limited to insurable acts and is subject to all terms of the policy. Securities claims that involve actual fraud, ill-gotten gains, disgorgement, restitutionary damages or settlements are not covered under this policy. The IPO InNAVation is limited to qualified risks. The endorsement is subject to Navigators Pro’s underwriting evaluation and an additional premium.
“Entrepreneurship, new firm formation, and stable capital markets are critical to economic growth,” said Chris Duca, President of Navigators Pro, in a statement. “Corporations contemplating an initial public offering (IPO) generally secure a D&O policy to attract qualified independent directors. IPO InNAVation provides peace of mind by offering enhanced protection against personal liability of an independent director at this critical stage in a corporation’s development.”
Source: The Navigators Group Inc.