Additions designed to protect personal assets

Marsh CEO UK and Ireland Mark Weil

Marsh has launched a set of enhancements to its policy for directors to improve protection of their personal assets when companies do not provide cover.  

Marsh Alpha provides “Side A” protection to directors of multinational corporations and other firms that kicks in when companies fail to provide cover, or their directors and officers policy has been exhausted or has exclusions.

The extras include broader internal investigation cover, two potential limit reinstatements and an additional sum of up to $500,000 for use by the policy holder’s board to fend off attempts to restrict their access to the firm’s D&O policy.

Marsh Financial and Professional Practice Senior Vice President Leslie Kurshan said: “While indemnification from the company would normally be a director’s first line of defence, companies are sometimes unwilling or unable to indemnify individuals.

“Without indemnification from the company or appropriate insurance protection, legal costs in connection with a claim or investigation can deplete an individual’s personal assets very quickly.

“Additionally, many traditional D&O policies are not designed to respond to the changing way in which companies now interact with potential claimants, such as self-reporting to authorities and conducting internal investigations.

“Marsh has secured a number of enhancements to Marsh Alpha which provides increased personal protection, should the worst happen.”

The extras were introduced in response to the growing trend for legislators, prosecutors, regulators and investors to hold company directors personally responsible for the consequences of management decisions, Marsh said.