Directors who buy VL’s Personal D&O policy recognise that:
- whilst most companies are likely to have some form of D&O insurance an individual director may have little control over the purchase of cover or its shape and form
- indemnity under a D&O cover may be subject to exclusions, terms and conditions which could result in indemnity being denied due to circumstances of which a director may have no knowledge
- the interests of the director may be in conflict with those of other directors
- aside from insurance, the director’s company may be unable to, or chose not to, grant indemnity under its indemnification provisions
The policy operates in the same way as other D&O policies in that it:
- covers claims against the insured for wrongful acts in his/her capacity as a director of specified companies
- pays defence costs
- is a “claims made” policy - it responds to claims first made or circumstances first discovered and notified to the insurer during the policy period
- is subject to a retroactive date
In proposing the insurance, the director nominates the company(ies) in respect of which cover is required.
The Vero Liability underwriter will most likely require financial information for the selected companies.