New coverage helps protect directors and officers of public, private
and nonprofit organizations when corporate assets and other
indemnifications are not available
HARTFORD, Conn.--(BUSINESS WIRE)--
Travelers (NYSE: TRV)
today announced the addition of Broad Form Plus+sm to its
portfolio of directors and officers (D&O) coverages as a way to protect
against concerns above and beyond corporate liabilities.
“Directors and officers may be putting personal assets at risk with
every decision they make,” said Jeffrey P. Klenk, Senior Vice President,
Travelers Bond & Financial Products. “Our new Broad Form Plus+ coverage
extends protection beyond traditional ABC D&O policies by offering
difference in conditions coverage for nonindemnifiable risks.”
While many companies typically provide protection to their directors and
officers for defense costs and indemnity through their corporate bylaws,
there are certain instances where a company cannot indemnify. These
occurrences can include: settlements or judgments in lawsuits brought by
or on behalf of the corporation; when public policy limits
indemnification, or payment of defense costs is limited under certain
federal and state statutes; and when there are no available corporate
assets. Travelers Broad Form Plus+ helps protect directors and officers
of public, private and nonprofit organizations across a variety of
industries against these and other risks.
Key features of Broad Form Plus+ include:
-
Nonrescindable coverage for nonindemnifiable claims against directors
and officers, including pre-claim inquiries by regulatory or
governmental authorities;
-
No exclusions for independent directors and an additional limit of
liability for nonindemnified loss of independent directors without a
requirement that claims, pre-claim inquiries or custodial detentions
be unrelated;
-
Difference in condition coverage or protection when indemnification is
not available or paid by any other source;
-
Automatic six-year extended reporting period for independent directors
that cease serving in all capacities within the organization; and
-
Coverage for fees and expenses incurred by a director or officer to
seek release from arrest or confinement to a residence or custodial
facility by law enforcement agencies in the U.S. and abroad, including
travel and accommodation expenses for relatives if the detention
occurs in a foreign country.
Broad Form Plus+ does not have exclusions commonly found in D&O policies
in the industry, such as prior notice, prior or pending proceedings or
litigation, bodily injury or property damage, professional services,
insured versus insured and the Employee Retirement Income Security Act
(ERISA).
Travelers offers a comprehensive suite of management liability products,
including D&O liability, employment practices liability, fiduciary
liability, miscellaneous professional liability, crime, cyber liability
and kidnap and ransom coverage. The company’s dedicated underwriters,
risk control specialists and claims professionals provide extensive
industry and product knowledge and expertise.
About Travelers
The Travelers Companies, Inc. (NYSE: TRV)
is a leading provider of property casualty insurance for auto,
home
and business.
A component of the Dow Jones Industrial Average, Travelers has more than
30,000 employees and generated revenues of approximately $26 billion in
2013. For more information, visit www.travelers.com.
Media:
The Travelers Companies, Inc.
Amy Lynn Banek,
860-954-0841
abanek@travelers.com
Source: The Travelers Companies, Inc.