Aon Risk Solutions, the global risk management business of Aon plc, released details about its exclusive Maximum Protection D&O product, which provides additional coverage to directors and officers when Non-Indemnifiable D&O limits are exhausted or do not respond.
“One of the greatest risks for individuals serving as directors and officers of companies is their personal liability,” said Christine Williams, chief operating officer of Aon Risk Solutions’ Financial Services Group. “While it would be extremely unlikely Non-Indemnifiable D&O insurance would not respond; if such a situation was to occur, the Max-Pro D&O feature would provide an additional level of benefit.
Leona Lik, managing director with Aon Risk Solutions’ Financial Services Group in Bermuda added, “In fact there has been a recent situation where a lead Non-Indemnifiable D&O insurer has denied coverage.”
This new protection will most often be added to the top layer of a Side A D&O program, which is designed to respond to catastrophic situations where the company does not indemnify the directors and officers, potentially causing those individuals to become personally liable. Max-Pro D&O provides added protection in the event the company is not in a position to fund the pursuit of the individuals’ rights to coverage.
Max-Pro D&O protection features include:
Max-Pro D&O coverage can be triggered when the D&O insurers who write the Side A coverage deny in whole, or in part, any reported claim or circumstance. It can be activated when the parent company is insolvent or in the absence of an individual dispute.
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