A situation that could lead to a directors and officers liability claim arises. What’s an agent or broker to do?
According to Susanne Murray of the New York office of insurance broker HRH, an expert in D&O liability coverage, the broker’s involvement actually begins well before any situation might arise. It begins when placing coverage for the client.
“[W]hen we place the insurance, …we need to say: ‘Make sure that you understand what it is you’re looking for and call us if you have any possibility that you’ve got circumstances that might lead to a claim….,'” says Murray. “Our first part is an educational one.”
The broker should stress that the client not assume there is a real claim afoot. “The second part is: ‘Don’t make the decision yourself as to whether or not it’s an insurable problem. Anything at all, give us a call.’ We’re happy to talk through it and determine whether or not it’s an insurable problem,'” says Murray.
Murray discusses D&O claims and the role of the broker in a recent interview with Insurance Journal’s Andy Simpson.
In subsequent segments, she reviews how the possibility of a claim affects the D&O renewal process of marketing and even pricing.
In a third segment, Murray discusses the ways in which brokers may — or may not— choose to behave during claims management.
For the complete interview, click here.
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