The Chubb Group of Insurance Companies has updated its “Loss Prevention Guidelines for Independent Directors” handbook.
“Shrinking company profits and stock price fluctuations are exposing independent directors to increased personal liability,” says Tony Galban, senior vice president, Chubb & Son, and underwriting manager for Chubb’s directors and officers liability insurance. “As the potential for independent directors to be held personally liable rises, they have a vested interest in making sure their organizations are following the latest corporate governance best practices.”
With this in mind, the 2009 handbook, includes new sections on topics such as holding executive sessions without management present; managing financial and industry-related risks; and ensuring legal compliance with anti-discrimination and employment laws, business conduct codes, and antitrust and competition laws.
The guide also covers the importance of corporate indemnification and liability insurance protection for independent directors.
Source: Chubb Group of Insurance Companies,
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