Woodruff-Sawyer & Co. has crafted a new personal protection solution called Wealth Security Policy for independent board members through a collaboration with an A+ XV rated Insurer.
Independent directors of corporations are subject to unlimited, personal liability. They can be named defendants in securities class action suits and are often the targets of derivative suits. The Wealth Security Policy is a personal policy for independent board members. It is designed to protect an independent director against personal liability when the director’s company and the company’s directors and officers (D&O) insurance program cannot or will not.
As independent directors can be held personally liable, their personal assets are potentially at risk. Many individual independent directors fear that they will find themselves having to make a personal, out-of-pocket payment to pay defense costs, or even settle a claim, if their company is insolvent and their company’s D&O insurance policy is either inadequate or unavailable.
“We take these newly developing risks very seriously,” said Judy Roberts, partner at Woodruff-Sawyer. “We have worked with underwriters, carriers and securities class action litigators to craft a policy that is responsive to these needs.”
Source: Woodruff-Sawyer & Co.
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