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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