Personal Protection Policy

In the complex, ever-changing world of management liability, independent directors of public, private and non-profit companies need to protect their personal assets outside of—and in addition to—any other available coverages or sources of indemnification.

These independent directors need a flexible insurance policy that will:

• Provide coverage to them without having to worry about the exact terms of the management liability policy maintained by the organization upon whose board they serve
• Follow the director and provide protection for service on multiple boards
• Give the independent director the power to control which board the coverage will apply, even if the director no longer actively serves on that board
• Provide a streamlined, straightforward application and underwriting process

E-Risk Services, LLC has developed a policy that provides this valuable coverage for independent directors. Our innovative coverage has the following features:

• Coverage is excess of other insurance and indemnification, but will become primary if, for any reason, indemnification or the underlying coverage are not available
• True difference-in-conditions (DIC) coverage where the policy will not be subject to the terms and condition of any other insurance
• Broad definition of claim including:
  • Criminal proceedings 
  • Investigations and Wells notices 
  • Extradition coverage 
  • Demand for an interview from governmental or self-regulatory authorities 
  • Subpoenas from a proceeding or investigation 
  • Tolling or waiver of a statute of limitations
• Defense costs include cost of Investigation from shareholder derivative demands
• Spousal/domestic partner coverage
• Foreign Corrupt Practices Act (FCPA) coverage
• Coverage for exposures under Section 11, 12 and 15 under the Securities Act of 1933
• Punitive damages coverage with broad based favorable jurisdiction language
• Definition of Wrongful Act specifically covers fiduciary and employment Practices Wrongful Acts with no exclusion for wage and hour situations

Limited number of exclusions which provides expanded coverage for the Insured. For example: 

• No Insured versus Insured exclusion
• Bodily injury/property damage exclusion specifically amended not to apply to any employment practices Wrongful Act or securities claim
• Fraud/dishonesty/personal profit exclusion does not apply to Defense Costs, Loss under Section 11, 12 or 15 of the Securities Act of 1933 or loss (overall) unless determined by a final adjudication (including the exhaustion of all appeals, petitions and re-hearings)

If the Insured decides to serve on an additional board during the policy period, we offer an automatic ninety (90) day extension of coverage for the Insured on that new board. 

Non-duty to defend coverage which will provide the Insured the ability to choose the defense legal firm for a claim.

Ability to consider coverage for an independent director that sits on a Nonprofit, Private or Public board of directors  

Including, but not limited to: 

• Accountants
• Advertisers
• Alternative energy
• Automotive services
• Collection agencies
• Contractors
• Co-ops
• Daycare centers
• Distributors
• Defense contractors
• Employment/staffing firms
• Franchisee and franchisor 
• Information technology 
• Insurance agents/brokers 
• Life sciences
• Manufacturers
• Medical billing
• Personal services
• Professional services organizations
• Retail
• Real estate
• Restaurants
• Telecommunication
• Transportation services