XL Insurance has broadened its UK directors’ and officers’ (D&O) insurance policy
XL Insurance has broadened its UK directors’ and officers’ (D&O) insurance policy to better meet the specific needs of its UK client companies. ‘A PLUS D&O Advantage’ provides primary coverage or excess and difference-in-conditions coverage above an existing D&O liability policy.
A key improvement is cover for the cost incurred in appealing an order for extradition including bail or bond. The Extradition Act 2003 and the 2003 UK-USA Extradition Treaty have created new risks for UK directors, for example making it easier for them to be extradited to the US even though their action may not be an offence in the UK. These risks have been highlighted by several high profile cases, the most widely reported being that of the ‘NatWest three’.
Other improvements include the provision of blanket coverage for outside directorships of non-profit and privately-owned for profit entities. The policy’s exclusion section has also been removed, with some conduct exclusions (personal profit, illegal remuneration, dishonesty) now being ‘carved out’ within the definition of loss.