Directors & Officers dedicated worldwide protection A guide to Zurich s Side A policy
Global insurance protection for your corporate leaders Corporate leaders have increasingly become targets of regulatory scrutiny and civil litigation both in the U.S. and abroad. New regulatory and legal challenges make it more difficult to ensure that directors and officers have adequate insurance protection. Some executives are even questioning the value of traditional corporate coverages, particularly when indemnification from their company is often not available to them in foreign jurisdictions. Zurich s Executive Universal Select Insurance Side A policy will help to protect your directors and officers. 2
Key benefits of Zurich s Side A policy Broad coverage grants and limited exclusions Advancement of defense costs Option for directors and officers to purchase extended reporting period Non-rescindable coverage for additional reassurance International coverage and services in over 200 countries, tailored to local rules and regulations and premium tax obligations 3
Reach and experience to help protect your directors and officers In this complex business environment, only an experienced and financially stable global insurance carrier can help you protect your executives personal assets. Zurich s Side A policy is designed to address the evolving litigation landscape and offer broad insurance protections for liability exposures in the global marketplace. A traditional D&O policy is designed to protect the company and its executives. However, corporate leaders are often forced to compete with the company for the same finite limits. Within these policy limits are increasing settlement costs and exposures to liability, making corporate indemnification uncertain. The uncertainty becomes even more apparent when a company seeks to expand its global footprint to other parts of the world. As their roles and responsibilities grow, corporate leaders face even more region-specific exposures and local regulations. 4
Compliance with local regulations Your insurance carrier must understand what is and what is not allowed in the countries where you do business, so claims can be paid legally and quickly and civil penalties can be avoided. Zurich s award-winning Multinational Insurance Application (MIA) is a proprietary online tool designed to help you protect your company s assets in line with local regulations, without coverage gaps, and meeting all premium tax requirements. Monitoring more than 180 countries and territories, it includes information on local insurance laws for 41 risk categories. International coverage and services in over 200 countries including: China, India, Mexico, Japan, Brazil, Canada, Switzerland and more. 5
Broad solutions that put executives and their assets first The Zurich Executive Universal Select insurance policy can help you protect directors and officers when other coverage types may not. Scenario A traditional D&O policy typically pays out in layers starting with the company losses first, and potentially exhausting the benefits before covering the losses of the directors and officers. The D&O policy may not front the legal fees required to defend directors and officers. The D&O policy may have many limitations, opening up coverage gaps and leaving directors and officers at risk. The corporation has become insolvent and the bankruptcy court seized the D&O liability policy as an asset. The traditional D&O policy may not cover your company s foreign executives in many parts of the world. Solution Zurich s Side A policy will help you protect your directors and officers first and foremost. Zurich s Side A policy will cover the expenses as listed within your coverage as your directors and officers incur them. Zurich s Side A policy has broader coverage grants and limited exclusions, helping you protect your directors and officers. Zurich s Side A policy helps you protect your directors and officers, not the company; to avoid any potential dispute over who is entitled to the proceeds of the policy. With Zurich s global presence and experience, coverage is available in over 200 countries and territories. 6
The Zurich advantage The ability to help protect when it matters Zurich is an experienced global leader in Directors and Officers insurance. Every member of our D&O claims team is an attorney, with broad knowledge of today s litigation environment. Our experienced team understands global exposures, to ensure efficiency and compliance. They adhere to a set of best practices that underscores Zurich s commitment to consistently providing quality claims services, responsiveness and technical excellence. Zurich has the expertise, global reach, financial stability and dedicated team to manage your directors and officers program. More than 100 years of experience in the U.S. Insurance provider for the majority of Fortune 100 global companies Industry financial strength ratings* among the strongest: A.M. Best A+/stable, Standard & Poor s AA-/stable 7
*Ratings as of March 31, 2013. For the latest Best s Ratings and Best s Company Reports (which include Best s Ratings), visit the A.M. Best website at www.ambest.com. The rating represents the overall financial status of the individual member companies of Zurich in North America, including Zurich American Insurance Company, and is not a recommendation of the specific policy provisions, rates or practices of each issuing insurance company. A1-112001971-A (09/13) 112001971 Zurich 1400 American Lane, Schaumburg, Illinois 60196-1056 800 382 2150 www.zurichna.com 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 provided solely for informational purposes. Nothing herein should be construed as a solicitation, offer, advice, recommendation, or any other service with regard to any type of insurance product underwritten by individual member companies. 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 are underwritten by individual member companies of Zurich in North America, including Zurich American Insurance Company. Certain coverages not available in all states; coverages may be written on a nonadmitted basis 2013 Zurich American Insurance Company