Risk Considerations for Directors of Multinational Companies

Regulatory compliance has become a critical risk for directors and officers over the past few years, says Brenda Shelly, Marsh US D&O product leader.  “I’m not sure I’ve heard compliance talked about as much in the last 30 years as I have in the last two years,” Shelly said in this video interview.

Discussing the role of insurance in managing the numerous exposures for directors and officers of global companies, she outlines several key considerations when purchasing insurance coverage. For example, Shelly recommends paying particularly close attention to the terms and conditions and policy enhancements that affect the insurance contract construction directly, including:

• Definition of application.
• Severability provisions.
• Fraud and conduct exclusions.
• Claims notices.
• Continuity.

Those are the important parts of the coverage, Shelly said, concluding, “If they’re not done correctly, all the other enhancements don’t matter.”