Directors and Officers Liability Insurance (ABEN)

Directors and Officers Liability Insurance (ABEN)

Course #109431 | 3 P&C

This seminar is in three parts. The first addresses the corporate law principles that govern the standard of care for directors and officers. Simply put, what is the nature of the underlying liability that we are seeking to insure? After this, the seminar turns to a practical application of the first principles discussed. What are the current issues directors and officers face, and what are the trends with regard to claims?

This forms the basis of the next section: a discussion of the statistics on severity and frequency of directors and officers claims, along with a few statistics on what actually does drive D&O purchasers and what should drive them to the purchasing decision. The purchasing decision has to confront the costs in the marketplace as it exists today, and the section concludes with some observations about price and capacity.

The final section is extensive. It is devoted entirely to the D&O policy forms that producers are likely to encounter. It also contains an extended discussion on the structural transition from for-profit to non-profit organizations (along with a discussion of why nonprofit directors and officers to consider D&O insurance).

With claims-made being the predominant form in the D&O world, the seminar detours into what may be a reminder for many insurance professionals – the difference between claims-made and occurrence products and the impact of retroactive dates. The seminar concludes with a few of the conditions of the standard policy form and some points which may be subject to being negotiated for larger risks.