Austin, Texas-based National Insurance Partners Inc. (NIP) has launched a broad form of directors and officers insurance coverage for independent directors of companies.
X-PROTECT is offered in partnership with the Executive Liability Division of Great American Insurance Group. NIP, which has developed a Director Protection Plan designed to help afford protection to independent directors and emphasizes the need for directors becoming more involved in the process including embracing corporate governance reform, will be the exclusive wholesaler for the product.
Today’s challenging economic environment increases the vulnerability of independent directors, according to Bill Harrison Jr., president of NIP. The newly launched product is designed to “give these directors the certainty that their personal assets are protected while fulfilling their obligations.”
“Protection fears have escalated on corporate boards today — and for good reason,” added Bill Pollock, chairman and founder of NIP. “Every director of a public (and private) company should be asking the question “Could what happened to the Enron, WorldCom and Just for Feet directors [having to get out their personal checkbooks] happen to me? Many directors think it could not happen to them or their company.”
Exclusions contained in traditional D&O policies often leave independent directors vulnerable to personal liability, according to NIP. The company has researched, analyzed and surveyed the potential for independent directors to be held personally liable and compared the existing coverage available for independent directors and have concluded that they need a “state-of-the-art D&O policy.”
“This is no time to cut back on D&O coverage for independent directors,” states Pollock. “If we want talented people to serve as directors, the strategists and visionaries for corporations, we need to protect them by providing them with “state-of-the-art” D&O insurance.
NIP is a Texas-based risk management, corporate governance and financial solutions firm with offices in Houston, Austin, Dallas and San Antonio. The firm specializes in board of director/trustee protection, directors’ and officers’ liability insurance, property and casualty insurance, risk management, executive compensation consulting and executive and employee benefits
Source: National Insurance Partners, www.nationalinsurancepartners.com
Was this article valuable?
Here are more articles you may enjoy.