Coverage / Financial lines
Directors' and officers' liability
The policy belongs to the company. The protection belongs to the people.
Personal liability of directors and officers, company reimbursement and securities claims for listed and private companies.
01 Scope
What it may cover
Subject to wording. Insurers differ; a sound policy answers these three points.
Claims against directors and officers for wrongful acts in their role.
Reimbursement of the company where it indemnifies its directors.
Investigation costs from the SFC, ICAC and other regulators.
02 Placement
What affects price and terms
Underwriters price what they can see. These facts come first, so we present them before they ask.
Listing status, market capitalisation and share price history.
Financial strength, debt covenants and any going-concern note.
Merger, acquisition or capital-raising activity in the next 12 months.
Operations or listings in the United States.
03 The underwriting file
What we need from you
- Latest audited accounts and interim results.
- Group structure, with any US subsidiaries or ADRs.
- Details of pending litigation and regulatory enquiries.
- Current wording, limits and retentions.
A complete file reaches more markets and returns firmer terms. Gaps are priced as uncertainty.
04 At renewal
Common gaps at renewal
01Shared limit, no Side A
When the company is insolvent, directors compete with it for the same limit. A dedicated Side A layer protects them.
02Insured-versus-insured excluded in full
Claims by liquidators and minority shareholders should be carved back.
03Run-off not arranged at a change of control
A sale or delisting ends the policy. Six years of run-off should be agreed before closing.
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