Beazley Introduces Beazley Armour, a New Comprehensive Side A
Directors and Officers Liability Product
London, April 9 2008
Beazley Group plc (BEZ.L) announced today the
introduction of Beazley Armour, a Side A policy form designed to
provide exceptional protection for directors and officers and, on
an excess basis, a seamless fit over traditional D&O
programs.
Side A D&O policies protect directors and
officers in cases where indemnification by the company is not
available. They have grown in popularity in recent years,
following the corporate scandals early in the decade and in tandem
with the more recent growth of derivative lawsuits.
Derivative suits are those brought by shareholders on behalf of a
company against its directors and officers, alleging breach of
fiduciary duties.
Beazley Armour has been carefully designed to
provide optimal protection for directors and officers.
When written on an excess basis, the product incorporates a broad
“difference in conditions” provision. Other benefits
include:
- Available policy limit of up to $15
million
- Automatic reinstatement of policy limit for
independent directors
- Policy is non-rescindable
- Follow form of underlying insurance language
when written on an excess basis
- No acquisition reporting threshold
- No insured vs. insured exclusion
- Full severability with respect to application
and exclusions
“Corporations large and small are
increasingly recognizing 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.”
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