Travelers Expands Directors & Officers Coverage

Travelers introduced its Advantage 500M for Public Companies, an enhanced directors and officers (D&O) liability policy that is specifically designed to offer more comprehensive coverage for growing public companies in one package.

Advantage 500M for Public Companies is offered to public companies with a market capitalization of $500 million or less by wrapping various features and enhancements into one policy.

“In today’s business environment, corporate directors and officers are being held to a higher standard and are facing increasing scrutiny by shareholders and regulators,” said Mark Lamendola, vice president, Travelers Bond & Financial Products. “The compliance costs associated with Sarbanes-Oxley has had a disproportionate impact on smaller, public companies, potentially putting them at greater risk. To that end, we’ve created Advantage 500M for Public Companies which provides broad coverage and protection for these emerging companies and their directors and officers.”

In addition to the comprehensive protection offered in its directors and officers liability policy form, Travelers Executive Choice for Public Companies, the enhancements provided in the Advantage 500M for Public Companies endorsement offer additional key features to growing companies, which include:

–Independent Directorship Liability Coverage – such as a $1 million separate limit with difference-in-conditions features, broadening coverage for independent directors;

–Broadened Policy Definitions – including an expanded definition of Claim to include written demands for non-monetary relief
Broadened General Conditions and Limitations – such as non-rescindable coverage for insuring agreements A, B and C; and

Amended Policy Exclusions – which includes Insured versus Insured exclusion carvebacks for claims by bankruptcy trustees, whistleblower activity and a Director or Officer who has not served at least four years.

Source: Travelers, www.travelers.com