Overview: 

A tailored standalone policy, designed to address the new exposures and requirements of a policy for directors of a sponsoring company which is no longer.

 
Who is it for?:

All UK and International businesses who are undergoing a change of control. Insured includes all past and present directors, officers and employees acting in management or supervisory capacity, shadow directors, outside entity directors, spouses, administrators and executors of insured?s estates, as at the transaction date

In the current regulatory and legal environment, directors face considerable challenges in the everyday management of their business. These challenges are compounded when a company undergoes a change in control.

A change of control in a company, such as an acquisition by another entity or private equity firm, has a significant impact on the D&O exposures of the directors and officers of such company and the D&O insurance held by them.
Such a transaction introduces additional exposures, such as claims for misrepresentation, errors and omissions during a transaction, and may expose directors personally, because the company for which they acted as directors and officers no longer exists, and therefore, they are unable to be indemnified by it for claims made against them.

We've prepared a White Paper that outlines the real risks directors can face.

Further, traditional D&O policies are not specifically tailored for companies which are the subject of a change of control, but are written with the presumption that the proposing company will enjoy continuing operations, and as a result, coverage falls short of that which is required in a run-off situation. While it is possible to amend existing policies to accommodate a change of control, and cater in part for the run-off exposure, such adjustments do not respond fully to the new environment that directors in run-off finds themselves in.