XL Catlin’s Bermuda Professional Lines Insurance Operations Announce Directors & Officers Coverage for Corporate Misconduct Investigations
Hamilton, Bermuda - February 07, 2017
XL Catlin’s Bermuda-based Professional Lines Team has enhanced its Directors & Officers coverage to address U.S. federal law enforcement’s increasing investigations of corporate misconduct allegations against Directors and Officers of private and public companies.
The D&O Corporate Misconduct Investigations Endorsement, developed for XL Catlin’s All Lines Insurance Excess Insurance Policy, has been created to clarify, confirm and expand the broad coverage offered under a standard lead Side A D&O policy.
Matthew Irvine, XL Catlin’s Bermuda Professional Lines Chief Underwriting Officer, said: “Since former U.S. acting Attorney General Sally Yates issued what is commonly known as the “Yates Memorandum” in September 2015 to all Assistant U.S. Attorneys and other key agencies setting forth the U.S. federal government’s focus on individual accountability for corporate wrongdoing and recently with several highly publicized D&O criminal trials, there has been a growing need for directors and officers to review the adequacy of their insurance and indemnification protection. This endorsement provides enhanced coverage for alleged corporate wrongdoing investigations and proceedings.”
The endorsement features include:
A $1 million reinstated limit for loss resulting from a criminal misconduct investigation or proceeding, incurred after other applicable limits are exhausted.
Coverage if the insured fails to provide testimony or produce documents based on his/her Fifth Amendment privilege or a requirement in a statute, rule or regulation to maintain confidentiality or concerning the obstruction of a criminal investigation.
Coverage for defense cost in a criminal proceeding, even if the conduct exclusion applies.
Coverage of fines or penalties if issued for non-intentional wrongdoing.
The insurability of fines or penalties covered under the policy shall be determined under the internal laws of England and Wales or, if more favorable to the insured, under any other applicable jurisdiction including without limitation the jurisdiction in which the parent company, the insured, the insurer, the policy or the claim is located.
Patrick Tannock, who leads XL Catlin’s Bermuda Insurance Operations, said: “At XL Catlin we realize that the risk landscape is constantly changing and therefore we remain focused on developing innovative solutions to address the rapidly evolving and emerging needs of existing and potential clients. This new offering is another example of this.”
About XL Catlin’s Insurance Operations
The XL Catlin insurance companies offer property, casualty, professional, financial lines and specialty insurance products globally. Businesses that are moving the world forward choose XL Catlin as their partner. To learn more, visit xlcatlin.com.
About XL Catlin
XL Catlin is the global brand used by XL Group Ltd’s (NYSE:XL) insurance and reinsurance companies which provide property, casualty, professional and specialty products to industrial, commercial and professional firms, insurance companies and other enterprises throughout the world. Clients look to XL Catlin for answers to their most complex risks and to help move their world forward. To learn more, visit xlcatlin.com.
Carol Parker TrottCommunications & Marketing Director Reinsurance & Bermuda