Marsh, the world's leading insurance broker and risk adviser, has launched a new Directors' and Officers' (D&O) liability diagnostic tool for private companies domiciled in the UK. Free to clients with assets below £250m, the tool measures the effectiveness and capability of the D&O policy that a company has in place.
Created by the Financial and Professional (FINPRO) Practice in London, Marsh’s D&O diagnostic tool quantitatively rates different areas of coverage afforded under a client’s existing D&O policy against a pre-ranked, ordered by importance, group of considerations and factors appropriate to the threats facing the boardroom. The tool examines some of the following areas:
- Exclusions that completely negate the effectiveness of the coverage
- Whether cover is available to all who may require protection
- Clearly identifying restrictive language
- Whether in the event of an acquisition of the company, the policy will offer full protection for prior acts
Andrew Jackson, Managing Director in Marsh's FINPRO National Practice commented: “Risk and the economy are exponentially linked. As the performance of companies weakens in a recession, the risk of legal and regulatory actions against directors tends to increase. Traditionally, many directors have relied upon indemnities given by their companies in order to protect them and their personal wealth. However, if a company becomes insolvent – an increasing risk in the current economic climate – these indemnities may be virtually worthless.
“The uncertainty of the ability of indemnities to provide protection, and the fact that not all D&O insurance policies are the same, led Marsh to develop this tool. There are many sub-standard policies which have been purchased as an 'off the shelf' product and historically renewed, which are not offering the protection that directors and officers need in these uncertain times. Marsh’s new tool will help clients ensure that their D&O policies are fit for purpose and provide the protection their directors need in today’s climate.”
About Marsh
Marsh, a global leader in insurance broking and risk management, teams with its clients to define, design, and deliver innovative industry-specific solutions that help them protect their future and thrive. It has approximately 26,000 colleagues who collaborate to provide advice and transactional capabilities to clients in over 100 countries. Marsh is a wholly owned subsidiary of
Marsh & McLennan Companies (NYSE: MMC), a global team of professional services companies offering clients advice and solutions in the areas of risk, strategy and human capital. With 53,000 employees worldwide and annual revenue exceeding $11 billion, Marsh & McLennan Companies is also the parent company of
Guy Carpenter, a global leader in providing risk and reinsurance intermediary services;
Mercer, a global leader in human resource consulting and related services; and
Oliver Wyman, a global leader in management consulting. Follow Marsh on Twitter
@Marsh_Inc.