Kayzen Specialty, the specialist financial lines MGA, is launching an innovative new approach for excess layer directors’ and officers’ liability (D&O) policies which protects individual executives from unexpected gaps in coverage.
The add-on provides an additional defensive safety net, protecting company management from vulnerabilities in the underlying primary policy. This ‘wrap’, which forms part of the excess layer on a traditional D&O tower will drop down into the primary layer and offer cover where the primary cover is refusing to pay either due to an exclusion or because of a limitation elsewhere in the policy.
The wrap will also protect the individuals where an underlying insurer has become insolvent, or when an insurer’s D&O business has gone into run-off which can lead to a more restrictive interpretation of policy terms.
It will also protect individual directors and officers from company indemnification issues, for example when a company becomes insolvent and cannot indemnify, gaps around derivative actions or where the company chooses not to indemnify.
Kayzen Specialty CEO Charles Boorman said of the new offering: “Kayzen Specialty is demonstrating yet again our commitment to enhancing client outcomes. Our new Side A Wrap (SAW) product provides broader personal asset protection whilst enhancing brokers’ ability to retain or win business with a product that is a unique differentiator in the D&O market. We’re delighted with the initial response from our brokers to a truly innovative broadening of ground up coverage that maintains the integrity of a traditional D&O tower.”
