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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.

Marsh Pty Ltd (ABN 86 004 651 512, AFSL 238983) (“Marsh”) arrange this insurance and is not the insurer. The Discretionary Trust Arrangement is issued by the Trustee, JLT Group Services Pty Ltd (ABN 26 004 485 214, AFSL 417964) (“JGS”). JGS is part of the Marsh group of companies. Any advice in relation to the Discretionary Trust Arrangement is provided by JLT Risk Solutions Pty Ltd (ABN 69 009 098 864, AFSL 226827) which is a related entity of Marsh. The cover provided by the Discretionary Trust Arrangement is subject to the Trustee’s discretion and/or the relevant policy terms, conditions and exclusions. This website contains general information, does not take into account your individual objectives, financial situation or needs and may not suit your personal circumstances. For full details of the terms, conditions and limitations of the covers and before making any decision about whether to acquire a product, refer to the specific policy wordings and/or Product Disclosure Statements available from JLT Risk Solutions on request. Full information can be found in the JLT Risk Solutions Financial Services Guide.