Companies received a record number of D&O inquiries in 2006, according to a Towers Perrin survey...
According to a Towers Perrin survey, companies received a record number of inquiries in 2006 (up 16% from 2005) from potential board members who are concerned about their current directors' and officers' (D&O) liability insurance.
At the same time, the survey shows that companies are responding to these inquiries by providing broader personal liability protection for directors and officers. In fact, 14% of those surveyed purchased Side A-only coverage in the past year. Side-A coverage provides D&O coverage for personal liability when they are not indemnified by the organisation.
“For the first time, a study is confirming a significant change in how companies are protecting directors and officers from personal liability,” said Michael Turk, senior consultant. “While Side A-only coverage has been growing in popularity over the last few years, we now have data to show just how prevalent the coverage has become.”
The popularity of Side A-only coverage reflects directors and officer's desires for improved personal coverage. Among repeat survey participants, there was a 53% increase in organisations that purchased a Side A-only D&O policy. Twelve percent of repeat participants purchased such a policy, up from 8% in 2005. Although public companies are the most likely to purchase a Side A-only policy, the largest percentage increases occurred with private and nonprofit organisations.
Hosted by comedian and actor Tom Allen, 34 Gold, 23 Silver and 22 Bronze awards were handed out across an amazing 34 categories recognising brilliance and innovation right across the breadth of UK general insurance.
