Willis has responded to the “increasingly challenging” regulatory environment in the UK by introducing an enhanced professional liability product with the acronym DARCSTAR, which stands for Directors’ All Risk Cover. Coverage is obtained through FINEX Global, a part of Willis Group.
The beefed up regulations could result in company directors and officers having to “pay expensive legal bills from a raft of official investigations and enquiries while their companies and insurers dispute whose responsibility it is to indemnify them,” Willis said.
Willis’ Financial, Executive Risk and Professional Liability business, in association with a insurers led by Allianz, QBE and XL, developed the new product, which Willis says cuts through the complexities of traditional D&O cover to advance all directors’ costs in the event of an allocation dispute.
The policy is eight pages, less than half the length of a standard D&O policy.
Among the features of DARCSTAR:
- One insuring clause that provides direct access for the directors to insurers, as opposed to three D&O cover clauses.
- D&O cover is on a broad “all risks” basis which means that the risk is covered unless excluded. This is different to conventional D&O policies which list several pages of insured perils.
- A guarantee from the insurers that they will not seek recovery from the policyholder for indemnifiable loss.
- No compulsory deductibles or retentions other than with respect to securities claims.
- Clear triggers for investigation costs cover across a broad spectrum of external and internal investigations and enquiries.
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