Ace has decided to introduce greater clarity in the D&O market, particularly with reference to the extent of cover relating to extradition.
Ace said the recent publicity surrounding extradition of directors from UK companies to the US has created confusion about the scope of D&O cover.
The company said buyers and brokers appear unsure as to whether or not the costs of defending and appealing extradition proceedings are covered.
The issue is unlikely to go away, it added, as there is a likelihood of further extradition proceedings, for example in relation to price fixing.
Joe Fernandez, D&O product mnager for Ace, said: "Our D&O policy wording has always catered for the defence and appeal costs associated with extradition proceedings. It's important that the market avoids making the matter more complicated by continually debating whether D&O will provide protection in these circumstances. In our view it does, and directors should not be left feeling confused."
As a response to enquiries from brokers, Ace has issued a policy endorsement stating that extradition proceedings are included in order to remove any uncertainty.
Fernandez added: "The impact of the NatWest three case has caused a lot of concern amongst those involved in the D&O market."
