New policy reflects growing trend to protect corporate leaders from lawsuits
Beazley Group has announced the introduction of Beazley Armour, a Side A policy form designed to provide protection for directors and officers (D&O), as well as ‘a seamless fit’ over traditional D&O programs on an excess basis.
Side A D&O policies, which provide protection where indemnification by the company is not available, have grown in popularity in recent years, following corporate scandals early in the decade. D&O policies have also been spurred by the more recent growth of derivative lawsuits, brought by shareholders on behalf of a company against its directors and officers, alleging breach of fiduciary duties.
When written on an excess basis, Beazley Armour incorporates a broad ‘difference in conditions’ provision. Other aspects include a policy limit of up to $15 million, automatic reinstatement of policy limit for independent directors and no acquisition reporting threshold.
“Corporations large and small are increasingly recognising the irreplaceable role that robust Side A coverage plays in attracting and retaining high quality executive and non-executive directors,” said Neal Wilkinson, leader of Beazley’s management liability team. “Our coverage has been designed to maximize the value and convenience of this protection.”