Skip to content
  • MyNewMarkets.com
  • Claims Journal
  • Insurance Journal TV
  • Academy of Insurance
  • Carrier Management
Insurance Journal - Property Casualty Industry News

Featured Stories

  • Cat Bond Investors Told to Brace for Jamaica Payout
  • Berkley Explains Property Market, Company Appetite
  • Articles
  • Jobs
  • Markets

Current Magazine

current magazine
  • Read Online
  • Subscribe
  • Login
  • Front Page
    • National
    • International
    • Most Popular
    • Magazine
    • Forums
    • Blogs
    • Videos/Podcasts
    • Newsletters
  • News
    • Most Popular
    • National
    • International
    • East
    • Midwest
    • South Central
    • Southeast
    • West
  • Magazines
  • Research
  • Directories
  • Jobs
  • Features
    • Events
    • Forums
    • Market Directories
    • Quotes
    • Polls
    • Rankings & Awards
    • Insurance Giving Back
  • Subscribe

More Insurers to Offer Better D&O Coverage to Businesses With Robust ESG Frameworks: Marsh

June 30, 2022
Email This Subscribe to Newsletter
  • Article

Marsh announced today several enhancements to directors and officers liability (D&O) insurance offerings that could enable more clients to benefit from superior environmental, social, and governance (ESG) frameworks.

The move signals a greater willingness among D&O underwriters to recognize organizations with strong ESG risk management as better risks. ESG has consequences for a number of insurance lines, including D&O insurance, which is designed to respond to shareholder, derivative, and event-driven litigation, as well as regulatory actions.

Among the policy improvements, Marsh has introduced new “Side D” entity coverage for regulatory investigation costs relating to climate-related financial disclosures within its London carrier-backed Marsh Delta D&O facility. Clients not publicly traded in the US that score highly using established ESG risk methodologies, including Marsh’s ESG Risk Rating tool, are now eligible for the coverage, which is typically only available to entities after a securities lawsuit has been filed.

“Interest in our D&O ESG initiatives has been incredible,” said Paul Denny, global Financial and Professional Liability (FINPRO) practice leader, Marsh Specialty. “More insurers see the connection between good ESG risk management and fewer or less severe D&O losses and are willing to recognize those with superior frameworks with better coverage. This is great news for our clients, many of which have made building a strong ESG framework a priority for their organizations.”

In addition, the London market arms of D&O insurers American International Group, Berkshire Hathaway Specialty Insurance, Sompo International, Starr Insurance Companies, The Hartford, and Zurich have agreed to participate in Marsh’s ESG D&O initiative launched last October. Under the initiative, US-based or US-listed clients that engage with select international law firms to review, bolster, and/or validate their ESG frameworks, will be considered for preferred D&O policy terms and conditions on ESG-related exposures by participating insurers, subject to underwriting.

Marsh Launches ESG Risk Rating to Assess Companies’ ESG Performance

Marsh also has enhanced its Lloyd’s of London-backed Marsh Alpha D&O facility, which provides protection for individual directors and officers not indemnified by the corporation, known as “Side A” difference in conditions (DIC) coverage. Clients globally that score highly using established ESG risk methodologies may now be eligible for an extra reinstatement of policy limits.

And, Everest Insurance, through its Bermuda affiliate, has agreed to offer policy enhancements on Side A / DIC coverage for Marsh clients globally with superior ESG frameworks. Enhancements may include explicit coverage for chief sustainability officers, increased limit for independent board directors, and coverage for related fines and penalties.

Source: Marsh

Topics Carriers

Was this article valuable?

Thank you! Please tell us what we can do to improve this article.

Thank you! % of people found this article valuable. Please tell us what you liked about it.

Here are more articles you may enjoy.

Old Republic to Acquire Small Farmowner Insurer Everett Cash Mutual
Adobe Stock imageRivian Agrees to Pay $250 Million to Settle IPO Fraud Lawsuit
Alaska Airlines Vows IT Upgrades After Outage Forces 400 Flight Cancellations
Florida Jury Awards Jack Nicklaus $50M in Defamation Suit vs. His Former Company

Interested in Carriers?

Get automatic alerts for this topic.

Email This Subscribe to Newsletter
  • Categories: National NewsTopics: environmental social and governance (ESG) criteria, ESG, Marsh
  • Have a hot lead? Email us at newsdesk@insurancejournal.com
More News
Chemical Board Investigators Digging Into Fatal Tennessee Explosives Plant Blast
Kumamoto, Japan - Nov 29 2019 : Facebook, Amazon, Apple, Netflix & Google (FAANG), high performance IT technology companies, is both an acronym & a buzzword to investors and people.Federal Judge Decertifies Apple App Store Class Action
Brown & Brown Reports Strong Q3 Revenue Growth of 35.4%
The Hartford Q3 Net Income Up 41%
More News Features

Read This Next

  • More Insurers to Offer Better D&O Coverage to Businesses With Robust ESG Frameworks: Marsh
  • Why Remote Hires Can Be Your Agency's Best Recruiting Solution
  • Ryan Specialty Agrees to Acquire Canadian MGU Stewart Specialty Risk Underwriting
  • NY Insurance Regulator Warns of Cyber Threats From Third-Party Service Providers
  • Rotting Apple: Berkley Explains Property Market, Company Appetite

Insurance Jobs

  • Regional Sales Manager - Irving, TX
  • Senior Underwriter - Denver, CO ( Hybrid)
  • Business Development Representative - Remote/Pittsburgh, PA/Allentown, PA
  • Property Liability Claims Supervisor - Wilsonville, OR
  • Agency Inquiry Consultant I – (Remote) - Illinois, IL
MyNewMarkets
  • Bigger Piece of the Pie: Surplus Lines Market Hits New Record as Specialty Lines Continue to Grow in Prominence, Market Share
  • Death and Insurance (Not Taxes): Part One
  • AI for Agents
  • How to Attract the Next Generation to Insurance
  • 5 Evolving Trends Shaping Architects and Engineers Coverage
Claims Journal
  • Exonerated Trader Tom Hayes Sues UBS For $400M Over Libor Accusations
  • PepsiCo Resolves Lawsuit Over Gatorade Bar Health Claims
  • Five New Members Join CAPA Board of Directors
  • J&J Talc Cancer Suits Jump 17% After Failed Settlement Effort
  • Canada Pension Fund Sued by Young People Over Climate Risks
Academy of Insurance education
  • October 21 E&S Property Underwriting
  • October 23 Gotchas That'll Getchya - Latest Policy Language That'll Get You Sued
  • October 30 Challenges in Agency Mergers – Reducing Staff Flight and Avoiding E&O Claims
  • November 6 Risk and Insurance for Digital Nomads

Insurance News

  • News by Region
  • News by Topic
  • Yesterday

Site Search

Features

  • Insurance Markets Directory
  • Forums
  • A.M. Best Company Ratings
  • Industry Events
  • Agencies For Sale
  • Newswire
  • Insurance Jobs
  • Rankings & Awards

Connect with us

  • Email Newsletters
  • Magazine Subscriptions
  • For Your Website
  • RSS Feeds
  • Twitter
  • Facebook
  • LinkedIn
  • Do Not Sell My Info

Insurance Journal

  • Submit News
  • Advertise
  • Subscribe
  • Reprints
  • Link to Us
  • Contact Us

Wells Media Group Network

  • Insurance Journal
  • MyNewMarkets.com
  • Claims Journal
  • Insurance Journal TV
  • Academy of Insurance
  • Carrier Management
© 2025 by Wells Media Group, Inc. Privacy Policy | Terms & Conditions | Site Map