Marsh Enhances D&O Difference in Conditions Coverage

Marsh has enhanced its Side A directors & officers (D&O) difference in conditions (DIC) cover Marsh Alpha in response to the new and emerging legal and regulatory risks facing directors and officers. The enhanced coverage now includes broad investigation cover, including cover for purely internal investigations; a broader definition of non-indemnified loss; and terms that permit the submission and review of defense expenses to insurers, without compromising the insureds’ privileges, which could prejudice them in the underlying action.

Developed exclusively by Marsh and underwritten by a panel of Lloyd’s insurers, Marsh Alpha provides Side A D&O DIC cover designed to protect individuals’ personal assets. Marsh Alpha is available to both public and private companies, including financial institutions. More than 100 million GBP/USD/EUR/CAD/AUD of coverage is available.

“The questioning of the legality of the conduct of executives now proceeds differently than it has in the past. Increasingly, investigators working for the company gather evidence on the conduct of its employees, directors, and officers in cooperation with regulators and prosecutors, or in anticipation of reporting the conduct to them to head off a more formal enforcement agency inquiry,” said Leslie Kurshan, head of Product Development for the Financial and Professional (FINPRO) Practice at Marsh UK. “Traditional D&O liability insurance policies provide cover when a legal proceeding is served, or a formal investigation commences, but generally include few scenarios where an individual is investigated by his or her own organization. In the current environment, individuals may need legal assistance before these traditional policies would respond.”