When In Doubt Notify: Directors and Officer Insurance Notifications

A timely reminder when renewing programs with different ABC/Side A only limit composition

Appropriate notifications are particularly important in today’s market conditions, where insurers are either not supporting an existing Directors and Officers (D&O) program going forward, or are proceeding only on more restrictive terms and with new insurers taking on risk.

In our latest whitepaper, titled 'When In Doubt: Notify, our Financial and Professional Liability (FINPRO) team explores this requirement in relation to a hypothetical scenario, one that we are increasingly facing in the challenging post COVID-19 market. However, many of the issues, coverage concerns, thought process and steps outlined below would also be applicable for other instances when “continuity of coverage is broken” for example:

• Where the expiring ABC limits are reduced going forward.
• Where there is a need to replace one or more insurers in the expiring tower with new insurer(s) at renewal without a new insurer(s) providing full continuity by the imposition of a Specific Matter exclusion or by updating the Pending & Prior Litigation exclusion (to the current date).
• Where the going forward program has significantly higher retentions.
• When a Specific Matters Exclusion is added at renewal.
• Where notable new exclusion(s) – COVID-19, or other “event driven” issues are added at renewal.

We also look at notification of circumstances, impacts on renewal negotiations and what to do if you're changing insurers. 

Download our whitepaper now.

Please note any statements concerning legal matters are based solely on our experienceas insurance brokers and risk consultants and are not to be relied upon as legal advice,for which you should consult your own legal advisors. Marsh makes no assurances regarding the availability, cost, or terms of insurance coverage.