New product measures the effectiveness of a company’s D&O policy
Marsh has launched a new Directors' and Officers' (D&O) liability diagnostic tool for private companies domiciled in the UK.
The tool is free to Marsh clients with assets below £250m and measures the effectiveness of the company’s D&O policy.
The D&O diagnostic tool rates different areas of coverage afforded by a client’s existing D&O policy against a pre-ranked group of threats facing the boardroom.
According to Marsh, the tool will analyse such things as, exclusions, whether cover is available to all who may require protection, restrictive language and whether the policy offers protection for prior acts.
Andrew Jackson, managing director in Marsh's FINPRO National Practice commented: “Risk and the economy are exponentially linked. As the performance of companies weakens in a recession, the risk of legal and regulatory actions against directors tends to increase. Traditionally, many directors have relied upon indemnities given by their companies in order to protect them and their personal wealth. However, if a company becomes insolvent – an increasing risk in the current economic climate – these indemnities may be virtually worthless.”
“The uncertainty of the ability of indemnities to provide protection, and the fact that not all D&O insurance policies are the same, led Marsh to develop this tool. There are many sub-standard policies which have been purchased as an 'off the shelf' product and historically renewed, which are not offering the protection that directors and officers need in these uncertain times. Marsh’s new tool will help clients ensure that their D&O policies are fit for purpose and provide the protection their directors need in today’s climate.”