Directors & Officers

Nuts & Bolts: The Hartford Financial Services Group Inc. has created Priority Protection, a new D&O product that protects individual directors and officers. Lawsuits are generally filed against the company and its key executives. Defending the company, however, can exhaust policy limits so personal assets are potentially left vulnerable. Also, a traditional D&O policy can be considered an asset of the company during a bankruptcy proceeding, so there may be no protection available for the directors and officers. The Hartford’s Priority Protection is reportedly a highly flexible, nonrescindable policy designed for public and private organizations of all sizes. It can be purchased to supplement a traditional D&O policy or by itself. Severability of the application and the conduct exclusions preserves coverage for “innocent” insureds by not imputing one individual’s knowledge to another. The “nonrescindable” language ensures that the insurance remains in place throughout the policy term. A broad definition of “claim” includes coverage for written demands for civil and criminal proceedings, formal administrative or regulatory proceedings, such as target letters from investigative authorities; and subpoenas from the SEC. Other features include the flexibility to choose defense counsel and the “difference in conditions” feature which is available to provide first–dollar protection for nonindemnifiable claims when an individual insured is unable to access D&O coverage due to cancellation of underlying policies, denial of coverage, or if bankruptcy proceedings prohibit the company from advancing defense costs.

Dollars: Premiums and deductibles/retention vary. Limits up to $25 million.

Carrier: Hartford, rated “A+,” admitted.

States Available: Most states.

Contact: Patricia Fitzgerald, (212) 277–0457, or patricia.fitzgerald@thehartford. com.

Excess Liability
Nuts & Bolts: Salmen Insurance Services is offering a new excess liability market. Writes over RRGs, bankers, nonrated and “B”–rated carriers.

Dollars: $1 million policy limit varying per policy. $1,000 to $5,000 deductibles available with a minimum premium of $2,000.

Carrier: Golden Insurance Co., not yet rated.

States Available: All states.

Contact: Hadley Wood, (760) 536–0520, or www.goldenexcess.com.