Chubb addresses gap in D&O market

US

Chubb Specialty Insurance has developed a product which it claims will fill the gap in cover created by standard directors’ and officers’ (D&O) policies. Tony Galban, senior vice president and underwriting manager in Chubb Specialty’s D&O division, describes the product as an excess D&O liability policy which provides a dedicated limit of liability for board members beyond whatever liability cover is provided by the corporation. “In some situations, the company cannot or is unwilling to provide indemnification to its leadership team, putting a director or officer’s personal assets on the line. As a result, it has become increasingly difficult for companies to attract and retain experienced and knowledgeable directors,” Mr Galvin explains. Coverage is activated when other D&O insurers fail to meet their obligations.