Zurich Corporate Directors & Officers Liability Insurance: Zurich D&O Select. Raising the bar

Transcription

1 Zurich Corporate Directors & Officers Liability Insurance: Zurich D&O Select Raising the bar

2 Zurich s Corporate Directors & Officers Liability insurance Zurich D&O Select is here to help.

3 A changing national and global regulatory and legal landscape, as well as the impact of heightened scrutiny by the public and the media, has created unprecedented exposures for corporate directors and officers. Regardless of industry or type of business, the threat of litigation is real, its potential sources are many, and the consequences can be enormous. We re raising the bar on Corporate Directors & Officers protection. Our new Corporate D&O coverage Zurich D&O Select offers market leading innovations along with more than 75 policy enhancements, all backed by the financial stability of Zurich. Market leading innovations Zurich s new Corporate D&O coverage takes the lead, offering new levels of protection that respond to today s risk environment. Retired Independent Directors Side A protection provides an additional level of protection for retired independent directors with personal Side A coverage after all other insurance protection is exhausted. Environmental Mismanagement claims extension, including coverage for climate change and global warming disclosure claims, restricts the pollution exclusion so that it does not apply to traditional management liability exposures such as securities claims, retaliation claims against insured persons and all Side A coverage claims of any nature. Enhanced definition of claim provides, in addition to the expanded coverage for Securities Claims, insurance for shareholder derivative demands, investigations (sublimited) and coverage for Wells notices and Target Letters as Claims. Enhanced Side A Coverage, in addition to the special provisions for Retired Independent Directors and Environmental Mismanagement Claims, special Side A coverages include full non-rescindability and defense costs for certain pre-claim deposition costs of any Insured Person (such as a grand jury). Extended Reporting Period (ERP) allows any individual Insured Persons to elect this option at customized rates, if the policyholder declines to purchase the ERP. 1

4 A broader, enhanced policy that stands apart in the marketplace In addition to our innovative features, Zurich has worked closely with brokers and customers to enhance our policy and include the critical definitions and coverages they requested. The result: a policy that reflects today s needs and responds to the current landscape of risk. Here are just a few highlights of the enhancements we ve included in our new policy: Expanded definitions Definition of claim includes: Request or warrant for extradition Arbitration or mediation proceeding Any request or demand to interview or depose an insured person (IC A and D only) Definition of insured persons includes: In-house general counsel, risk manager, directors of investor relations and human resources and their functional equivalents Managers of limited liability companies, joint ventures and partnerships Employees with respect to any Securities Claim Employees with respect to any Claim other than a Securities Claim if the claim is also made and maintained against a director or officer Definition of loss includes Most favorable venue language for determining insurability of punitive, exemplary and multiplied damages FCPA penalties and election law penalties 11 and 12 settlements and judgments covered against insured persons unless final adjudication triggers conduct exclusion Pre- and post-judgment interest on covered portion of judgment Definition of securities claim includes any statutory or common law related to securities Definition of subsidiary includes Limited liability companies, partnerships, joint ventures, foundations and political action committees sponsored by the policyholder 90-day automatic coverage for entities exceeding 20 percent asset threshold (if additional premium ultimately paid, if any) A portfolio of management solutions Employment Practices Liability insurance (EPLI) is an essential component of a wellconstructed insurance portfolio as the impact of employee litigation grows. Zurich offers custom solutions for employment practices liability exposures, complemented by risk management tools to help customers better manage their exposures. Fiduciary Liability insurance helps protect those with fiduciary responsibilities when the poor performance of a plan or a downturn in the stock market becomes the foundation of litigation by employees and retirees. Crime insurance helps protect an organization from a wide range of threats from employees or non-employees, including forgery or alteration, employee dishonesty/theft, robbery and safe burglary, among many others. 2

5 Exclusions Insured v. Insured exclusion Carveback for bankruptcy, including creditors committees, whistleblower claims, claims by directors and officers who have not served for three years and employment-related claims Bodily injury/property damage exclusion for wording Carveback for emotional distress in employment-related claims Carveback for securities claims General conditions Bankruptcy Bankruptcy does not relieve insurer of its obligations Waiver of bankruptcy stay to allow for advancement of expenses Representations and severability Insuring clause A non-rescindable Subrogation: insurer cannot subrogate against insured persons unless conduct exclusions triggered Outside position coverage: includes blanket not-for-profit coverage and for profit coverage for private companies in which the Policyholder owns an equity interest. Superior service and commitment Claims Every member of our dedicated D&O claims team is an attorney, with broad knowledge and experience in the complexities of this protection and today s legal and regulatory environment. To assure a complete understanding of each customer s particular circumstances, every Corporate D&O customer is assigned a single point of contact for claims, to help assure that we recognize and respond to our customer s unique needs. Underwriting Dedicated D&O underwriting professionals possess the industry experience and understanding to provide secure and resourceful solutions to meet customers needs in the U.S. and globally. Risk management and risk insight Our risk management solutions are designed to combine extensive insurance experience with the consulting capabilities needed to help customers better manage their specific cost of risk by identifying potential risks early and building solutions to help manage them effectively. Coming soon! Security & Privacy coverage A broader offering for more classes of business. 3

6 A few of these tools include: Zurich Multinational Insurance Proposition (MIP): As the promise and challenges of globalization have dramatically altered the way multinational corporations must think about risk and regulation. Zurich MIP aims to help resolve the uncertainty around the application of licensing laws and premium tax requirements applicable in more than 170 countries where cross-border risk is written. This is critically important to provide protection for any multinational company that has directors and officers in multiple jurisdictions. ZRisk This fast and powerful benchmarking tool offers publicly traded customers deeper insight into their litigation risk, drawing on the knowledge and technology of Zurich s proprietary D&O risk selection model. Customers with active Bloomberg terminals are eligible to access data and run reports as they choose, with selections that offer: Stock price volatility measures Financial distress indicators Probability of an SEC class action lawsuit Risk cost ZRisk enables customers to compare themselves to peers by industry, by market cap and other measures, and to track the condition of their peer companies as well as their own. Risk selection and insight Zurich utilizes sophisticated modeling technology to evaluate the likelihood and severity of a potential claim for each account. The development of our risk selection tool brings a higher level of transparency to the pricing process, offering our customers greater insight into their risk and its cost. This insight can be transformed into the foundation of a meaningful risk management program that leads to a long term alliance. Commitment We are recognized not only as highly skilled specialists in the Corporate D&O arena, but are known for the insightful tools and superior service we provide. In fact, it is this level of commitment to our customers that brings us a 90 percent renewal rate. Look to Zurich s new Corporate Directors & Officers coverage for market-leading benefits, meaningful risk insights and protection that works in today s volatile environment. 4

7 The stability to be there today and in the future Zurich has stood the test of time. Founded more than 135 years ago, the member companies of Zurich Financial Services Group have served customers with consistency and reliability across dramatically changing market conditions. We have weathered good times and bad, building a global presence that now delivers one of the industry s broadest portfolios of products and services. Our dedication to customer security is embodied in our commitment to the maintenance of a strong balance sheet no matter what the economic conditions of the moment may be. We have been in business since Currently, we are the third largest property/ casualty insurer in the world, doing business in more than 170 countries. We write property/casualty business for 70 percent of the Global Fortune 100 companies. We had a Group business operating profit of USD 5.2 billion in 2008* with 24 consecutive quarters of Group profitability at that point.* Zurich s disciplined approach creates value for our customers. Insurance is our business, and managing risk is what we do best. We underwrite carefully and manage our operations efficiently. We follow a conservative investment philosophy that has served us well in the past and which is serving us well in today s turbulent financial environment. We take a long view, valuing our stability, solvency and the assurance that we will be here for our customers tomorrow and for many years to come. Our exposure to U.S. sub-prime is very small. Exited the credit default swaps market in We were one of only a handful of global insurance carriers to generate a return on our investment portfolio in Our financial ratings remain strong* Zurich looks to the future. We believe that maintaining customer relevance means delivering risk insights and innovative products and services that anticipate and answer changing needs. We are totally committed to delivering what matters today and tomorrow. We continue to transform our organization to become easier to do business with and to define the Zurich customer experience. We have the strength and confidence to look ahead to new growth opportunities, tempered by the understanding that we earn market leadership one customer at a time. Our strong capital base positions us well for new growth opportunities. We ve put our employees closer to the customer by increasing the number of customer-facing employees in our North American organization. * Please visit for updated information. To learn more, speak to your regional contact or call us directly at

8 A A (04/09) Zurich One Liberty Plaza, New York, New York This is intended as a general description of certain types of insurance and services available to qualified customers through the companies of Zurich in North America. Your policy is the contract that specifically and fully describes your coverage. The description of the policy provisions gives a broad overview of coverages and does not revise or amend the policy. Insurance coverages underwritten by member companies of Zurich in North America, including Zurich American Insurance Company. Certain coverages not available in all states. Some coverages may be written on a nonadmitted basis through surplus lines brokers Zurich American Insurance Company