Arch Insurance Group Launches New Public Company D&O Policy
Arch Insurance Group, a member of Arch Capital Group Ltd., has launched Arch Essential D&O, a primary policy specifically designed to protect directors and officers from the increasing risk exposures associated with today’s business challenges.
In today’s legal and regulatory environment, every public company must act to adequately protect its directors and officers. This policy form, Arch Essential D&O, includes many new coverage enhancements.
“Our objective with this product is twofold: expand the level of protection for Individual Executives from today’s legal and regulatory perils, and bolster the Entity Coverage for better balance sheet protection,” said John A. Rafferty, executive vice president, Executive Assurance Division at Arch.
The Arch Essential D&O policy features include:
Legal and regulatory protections:
- Inquiry coveragefor insured persons in responding to a subpoena, a request to produce a document or to appear for an interview.
- Insured Person does not have to be a target to be covered
- Broad investigation coverageincludes clarification that no Wrongful Act is required to trigger coverage for inquiries or insured person investigations.
- Limited Entity vs. Insured exclusion (in lieu of Insured vs. Insured exclusion) that does not apply to:
- Defense costs that are non-indemnifiable
- Claims brought by trustees, examiners, or assignees thereof in the event of financial insolvency
- Claims brought in foreign jurisdictions
- Defense cost advancement within the retentionif loss is indemnifiable and the onsured organization fails or refuses to indemnify within 60 days.
- Coverage for civil FCPA penalties against insured persons for any non-willful violation
- Coverage for fees and expenses incurred in facilitating a claw back payment under SOX 304/Dodd-Frank 954
Organization liability protections:
- Securities investigation co-target coverage protects the insured organization when a securities investigation is also maintained against an insured person.
- Broad definition of subsidiary includes all entities while under management control, including partnerships.
