After being referred to Specialist Risk, a client reached out for help in despair over a Directors and Officers (D&O) dilemma. Their existing broker told them they had an issue with their D&O, but said it was impossible to resolve, particularly in the middle of a pandemic. This was because most D&O insurers had reduced capacity and limits, increased excesses and added onerous exclusions.
The challenge was to find an insurer who would write the trading companies cover without adding an exclusion for the Trustee Company, who owned the business. The business moved to an employee-owned model in 2018 and the Trust was set up to guard the interests of the employees/shareholders.
Two of the Directors sat on both boards and assurances had been given that the Trustees would never bring a claim against the company, but there were some prominent Non-Executive Directors on the company board, who felt unduly exposed by the exclusion. It is worth pointing out that the Trust was never incorporated into the structure of the company and so is a separate legal entity.
After some extensive market exploration and lengthy conversation with numerous prospective insurers, our experts sourced an insurer willing to write the cover, with no exclusion and we placed the cover for a very happy new client.
The Non-Executive Directors were relieved and delighted to be protected by the policy against any possible allegations. We had met the clients brief entirely, proving that this was not an impossible task, just one that needed expert placing and understanding of the client’s needs, fears, and concerns.