June 27, 2005 by Canadian Underwriter
Independent corporate directors have access to a directors and officers insurance policy that may shield them from personal liability stemming from regulator or shareholder lawsuits.
Hartford Financial Services Group Inc.’s Priority Protection-IDL coverage begins when an entity is barred by law from indemnifying its management or directors, when it declines to provide coverage to directors, or when financial insolvency prevents an organization from being able to offer indemnification.
In the event a traditional D&O or Side A policy excludes coverage due to bankruptcy proceedings, coverage is partially or entirely rescinded due to misconduct by other directors or officers, or defense costs have drained policy limits, Priority Protection-IDL will kick in, Hartford says.
Hartford will write limits of up to $25 million.