XL expands D&O liability coverage, including plaintiff’s legal fees associated with settlement

Commercial insurer XL Group plc announced Monday it has released its executive and corporate securities liability policy form, which provides for extensions of coverage for directors and officers.

The policy form is intended to “protect companies and their directors and officers in an increasingly complex litigation and regulatory environment in the US and around the world,” Dublin-based XL Group said in a release.

XL’s coverage now includes a “broader definition of loss.” A loss can now include plaintiff’s attorney fees associated with a settlement. It also includes arrest, detainment, or incarceration of an insured individual in relation to company business, as well as Side-A coverage for fines, penalties, and taxes levied against an insured person in the event of a company insolvency.

“In today’s global economy, companies and their directors and officers are subjected to emerging risks, and unprecedented regulatory and shareholder scrutiny,” stated Richard Wall, vice president of underwriting for XL Group’s professional business. “Based upon our extensive claims handling experience, and valuable input from our clients and brokers, we’ve worked hard to thoughtfully design innovative coverage while maintaining our familiar straightforward and simple style.”

XL Group’s professional business provides D&O liability coverage as well as professional liability for occupations such as architects and engineers. Other coverages include financial institutions, cyber and technology, commercial crime and fraud and employment practices.