There is something you’re able to do now to save money and you don’t even have to quit your everyday A coffee house. Here are Five approaches to save money on the home insurance right this moment.
Improve your allowable. Upping your insurance deductible can save you over $100. This is actually the simplest along with minimum distressing approach to saving a few further dollars in your home insurance.
Boost the security on the residence. You’ll find items that it can be done will cover themselves because of the decrease in home insurance top quality (my spouse and i.elizabeth. putting in useless products and also light up detectors). Various other precautionary features (similar to adding a burglar alarm) are generally wise and definately will really lower your home insurance fees, but can cost you more in the long run. Regarding rough, a security alarm may dissuade thievery which is invaluable.
Even as we properly understand, owning a vehicle of any type are a wide obligation as well as like all massive obligation, your principal aim is always to remain crash totally free. Nevertheless, getting cheap insurance is really a time intensive hassle just one you need to consume to cut costs week after week. People find by themselves spending ridiculous amounts of income for the insurance plan because of their automobile or even bike seeking an escape in addition to help save a little bit more income, i thought I used to be carrying out a similar thing when I had my own vehicle but the insurance company provided so little while wearing me spend a great deal for the motor insurance.
Great example, One time i acquired my own initial auto and i also do not forget that I needed to obtain several cheap insurance correctly. Therefore, I got on the internet to research and noticed lots of insurance firms who have been generating excellent delivers but those self same kinds had been expensive. I purchased some cheap insurance in my car though the value had been more than I really could pay i nevertheless had hire to cover, I used to be appearing out of our pocket One hundred dollars on a monthly basis for the insurance that we disliked because I always
came up a little quick for the lease.
Modest business insurance rates, although presented aplenty on the net, may
or may not provide all of the defense a selected enterprise may necessitate. There’s a lot of at risk any time functioning a small business to adopt a chance associated with running with no defense involving business insurance. It will take the skills along with guidance of a certified insurance professional or even agent to help small business owners understand the dynamics involved in obtaining insurance that is certainly danger particular. Any wheel store assistant, as an example, carries a very different coverage compared to the Chinese language restaurant in which he goes to lunch.
Professional insurance plans are best created for each individual danger instead of becoming composed to the person. While it is easy to get multiple little business insurance quotations, additionally it is vital that you make certain that that they compare through the outlines involving protection which can be to be had.
Fast cash loan will provide you loan for a short time, very easily and quickly until you get your income. There are a number of ways to get fast cash loans having some pros as well as cons. When you are going through a personal and very serious financial crisis, the cash which will be able to get out of that crisis will not come as easily. If you have the pressure of some bills that are overdue, or if you have to get your car repaired, or you have to get an electrician, plumber to your home as soon as possible, this stress is totally out of limits. In such situation you may feel that you have to take the weight of the whole world to your shoulders. Whatever your situation is, what are always there with you are fast cash loan lenders. With them, cash is just a click away. Now a day’s getting cash fast is very quick as well as easy.
The fast cash loan is basically for the expenses which come, urgently when you still have time for your incomes. They can be transferred to your account very quickly. They are very quick as they provide the loan approval very quickly and funding is done by the next working day. You can save on fast loans by promo cards which are available in many fast cash loan providing sites.
If You Need Cash instantly
When you need to get cash fast, you will get on very high rates that would stress you in long terms. However, you will waste any extra money or time, if you pay the amount of the loan quickly like after your next income check, but if you cannot pay these back quickly, their fee will be involved that an even make your situation worse. The other types of fast cash loans are as follows:
- Personal bank loan: Credit unions and banks offer personal loans that are unsecured, that was not followed by backing your house or something. One thing required for this kind of loan is that you should be having a good credit score. To get benefit, you can compare personal loan rates in your area. The one risk is that, if you miss the payments, your interest rate can be raised and your credit score will eventually drop.
- Credit cards: Most of the credit cards provide you cash in advance in your ATM or in the form of a check. The interest rate can be between 2 to 4% and can be as high as 25%. The risk is same as the personal bank loan, your rate of inters would be raised and credit score will drop if you miss the payments.
- BillFloat: It is a kind of service that would pay your bills when you are unable to pay them. What you need to get this type of loan is just a bank account. Risk that is included in it is that, every month, a late fee of 10 dollars can be charged.
- Peer-to-Peer Loans: In such type of loans, the money is lent to you by someone who is willing to give you loan as an investment. If you are having a good credit score, you can get this loan by 5% whereas with a bad credit score it may raiseupto 35%. Therefore it is necessary to maintain agood credit score. Feesof .5 to 5% will also be there that would depend in your ratings of credit. Risk can be of late fees.
- Secured Bank Loan: HELOC (home equity lines of credit), home equity loans or the other kind of belongings having interest ratesof around 5%. HELOC have multiple ratesof interests and there working is somehow different than other loans. Thus, the risk factor is very high. The risk involved is that there is a possibility of customer loosing there home and other assets. This can happen with HELOC and your interest rates can eventually jump high.
Letting your holiday home commercially has many benefits, however as with running any business it isn’t without risk. It is therefore important to get the right holiday home insurance cover. Many holiday home owners may unwittingly be relying on normal home insurance cover or even more disconcerting have no cover at all.
If you let your holiday home commercially for members of the public to take short term holidays, you should ensure that the insurer is aware; and that you do not fall foul of restricted cover when the property is not let. Look out for a policy providing cover in each of the following key areas:
Property Owners Liability: Without question the holiday home owner should be concerned about the substantial risks posed by third party liabilities. In this litigious society any one who owns a business can all too easily find themselves on the wrong side of a compensation claim that can seriously damage their wealth.
Make sure that your Holiday Home Insurance policy includes Property Owners Liability of at least £2,000,000 of cover. It is vital that you are covered in this way for injury to individuals, such as your tenants, visitors or guests and damage to their property. Most, if not all, holiday letting agencies will stipulate in their terms of business that you have this cover in place in order that they will act for you. If you manage the property yourself it is equally important that you have liability cover. However, that said, cover is no substitute for good risk management. It is therefore imperative that a full risk assessment of your holiday home and its garden is carried out and relevant safety legislation adhered to.
Employers Liability: As an owner of a UK holiday let you might think that Employer’s Liability is unnecessary. However consider this; in the course of managing your holiday letting business you will more than likely employ, even if only on a casual basis, a cleaner, a gardener, a handyman, a painter and decorator, to name but a few. Therefore a quality holiday home insurance contract should provide Employer’s Liability of £10,000,000 to cover death or injury claims in relation to anyone that you employ at your property.
Buildings Cover: You should not overlook the investment property itself – it is likely to be one of your major assets. To properly protect your holiday home property, you need to cover the buildings of your holiday home against all insurable risks for the full reinstatement cost, including any garages or outbuildings; fixtures and fittings; patios and driveways; garden walls, fences and swimming pools. You must not forget that you also need to include the cost of clearing the site in the event of complete destruction and the associated legal, architect and surveyor fees. Remember, the reinstatement cost is unlikely to be the same as the market value of the property or the price that you paid for it! If you under-insure your building you could fall victim to average being applied in the event of a claim. In a nutshell this means that, if your property is underinsured, your Holiday Home Insurance provider may not pay out the full amount of any claim, so it is important to work out the cost of replacement accurately and insure for the full amount.
You can get a good indication of your rebuilding costs by visiting the Association Of British Insurers (ABI) website and their building cost calculator for homeowners http://abi.bcis.co.uk. However the onus is on you to provide an adequate sum insured so you may be wise, particularly in the case that your holiday home is of non-standard construction, to have a professional insurance valuation carried out by a chartered building surveyor. If your Holiday Home is mortgaged, your lender will often specify as a result of their survey, the minimum buildings insurance sum insured they require.
Most insurers will index link the buildings sum insured so that you maintain an accurate insurance value over time, but of course this is dependent on you getting the right value in the first place.
It’s important to remember to get permission from your mortgage lender, your insurer and your landlord (in the case of a leasehold property) before you let your property for short-term holidays. This is very important as your insurance could be invalidated if you fail to do this.
Although your buildings policy usually includes theft or attempted theft; and damage by fire, lightning, explosion, earthquake, storm and flood; subsidence, heave and landslip; escape of water or oil, vehicle and animal Impact; aircraft and malicious damage; a quality Holiday Home Insurance policy should not restrict cover whilst the Holiday Home is let and will also extend to cover accidental damage.
Contents Insurance: The very nature of a holiday home is that it is a `home from home’ and therefore let on a fully furnished basis. In the past it was not unusual for the value of a typical holiday home contents to be relatively meager. Latterly as people’s expectations have risen, as has competition within the holiday home market, it is has become the norm rather than the exception that an owner spend tens of thousands of pounds furnishing their holiday home. LCD and Plasma TV screens, surround sound home entertainment systems, hot tubs and expensive garden furniture are becoming increasingly more common. A policy that includes full accidental damage cover on a new for old basis will provide you with the peace of mind that your property is protected. The sum insured should be adequate to cover the replacement value of the contents in total.
It is advisable for owners to complete an inventory of contents together with photographic evidence and schedule of values incase of a total loss. A tip for photographing your audiovisual electrical equipment is to also take a shot of the serial number, which can aid identification and recovery in the event of theft.
Loss Of Rental Income: Your specialist Holiday Home Insurance policy should also provide loss of rental income cover for insured perils, which consequently render the holiday home uninhabitable. It may take up to two years to rebuild a property leveled by fire; you should therefore check that you are covered for sufficient loss of rental income for this period. After all, if you have a mortgage to pay or if you are relying on the income from your holiday home business to live on, loss of rental income cover will be invaluable.
Ensure you have a good understanding of your policy cover and in particular you understand your obligations regarding any warranties. You or an agent may need to inspect your property every 14 days whilst empty; or ensure that a minimum temperature is maintained during cold spells if the water is not turned off and drained. These are not only sensible procedures to reduce the risk of the potential for damage to your property but may also affect your ability to make a claim if not adhered to. Do check that you are still fully covered even if your property is vacant for long periods; some policies will reduce cover to a minimum or even exclude certain covers completely.
If your holiday letting is seasonal, you may have considered letting the property on a short hold tenancy agreement for six months. If this is your intention be sure to check that your Holiday Home Insurance policy allows for this.
YRT Term Life Insurance Rates – The Truth About YRT Term Life Insurance Rates and How it Affects You
You’ve begun your search for term life insurance, and somewhere along the way you were presented with the concept of YRTs (Yearly Renewable Term insurance) as a good way to guarantee continued coverage and secure low rates. However there are some pitfalls to this
The fact is that any term life insurance will protect you for a given period called the term – hence the name “term life.” These terms generally span from 1 to 30 years and then are cancelled without any further coverage. Most companies will allow you to renew their plans at the end of these terms so long you take and pass a medical examination. Two things are certain with normal term-life plans.
You are never guaranteed a renewal.
The rate will most certainly increase.
This is why YRTs insurance policies are growing in popularity. A YRT will guarantee your renewal at the end of your term without the need for a medical examination. This is a good way to combine the best of term life’s low rates structure with the continued coverage features found in whole life policies.
Are YRT’s A Perfect Solution?
The fact is that YRTs are a solution for some people in certain situations but they are not always good choices for everyone. For the most part YRT is a good insurance solution
for those who need a life policy for less than 5 years. The reason is that though YRT’s enjoy an initially low rate the will go up a considerable amount at every renewal period, which is every year. So financially savvy people are using these for short-term coverage periods such as to protect car loans that only last for a few years.
Longer Term Solutions
If you find that you are insuring yourself for longer periods of time, say until a mortgage is paid off, then you may want to consider another type of term insurance such as Guaranteed Level Premium. GLP starts with a bit higher of
a rate than YRT but you can lock in that rate for a longer number of years usually up to 20 years. This means that for most people who have a few years paid down on their mortgage this should cover the largest exposure periods. A GLP term life policy can be renewed at the end of the term however a medical examination will be required.
The fact is that there are many policies and many rates available, so your best bet is to get several quotes from several sources.
Sources For YRT Term Life Insurance Rates
Mortgage unemployment insurance is sometimes known as job loss mortgage insurance. Those of us who have been fortunate enough to purchase homes have been offered mortgage insurance better known as credit life. This protection insurance protects the buyer in the event of loss of life. In which case, the mortgage is paid off. Job loss insurance protects us in the event of loss of employment.
The Basics of mortgage unemployment insurance may not be self explanatory because one might think; OK, my mortgage will be paid every month until I obtain work again. You might also think that it will pay 100% of the mortgage payment; however, these assumptions are a bit premature.
The fact is, there are several prerequisites to filing a claim. Some of the contingencies state that the job loss has to be involuntary. A person can’t just quit his or her job and file a claim. Disability is a justifiable claim. Most companies require that the insured have the policy at least six months before a claim can be filed.
Every worker is not eligible for job loss protection insurance. Self employed individuals and seasonal or temporary workers are not eligible. Labor union employees may be able to file a claim during strikes. Currently there are no laws available making it up to each provider.
The Cost of Mortgage Unemployment Insurance
People over 40 may remember companies that offered this type of insurance such as Household Finance, Beneficial, and Citigroup. Many people started to realize that the basic concept behind this insurance contributed to sub prime lending. The cost was just too high for an insurance policy buyers rarely benefited from. Especially, with the cost of the premium sometimes collected at closing. This was known as the single premium credit life.
These companies are today known as Household International and CitiFinancial. Associates First Capital Corporation was acquired to improve the lending process after it was determined that their practices contributed to predatory lending. These companies did not assertively market unemployment insurance at first. Most of them sold policies through banks and credit unions.
Updated Mortgage Unemployment Insurance
Although some companies still sell mortgage protection insurance through banks, credit unions and insurance companies, there are some who offer it through down payment assistance programs. The monies they extend to first time homebuyers for down payment is matched by sellers as a charitable donation. The costs include administrative expenses. One of the recognizable names is Bank of America. Another company with great promise is Paycheck Guardian that offers a direct to member cash benefit plan in the event of unemployment.
To replace the profits made from single premium credit life policies, Bank of America implemented the Borrower Protection Plan. The single premium credit life policies are being phased out.
Mortgage Payment Protection Inc. still sells its policies through the banks and credit unions. Utah has a program called “Neighborhood Gold”. This program offers the first year of protection free to the buyer while they pay for the second year with their mortgage payment. After the second year, the buyer communicates directly with Mortgage Payment Protection Inc. There is also a program called “Family Home Providers” of Cumming Georgia. Their administrative offices are in Roswell, GA
How Mortgage Unemployment Insurance Claims are Paid
GE Casualty offers its policy holders payments of half of all mortgage payments with a maximum payout of six to nine months at $45 per month. Most policies start within 30 to 60 days. Some companies, depending on the type of policy you have and the amount of the loan, will only pay principal and interest. Others might pay a limited amount of principal, interest, taxes and insurance. This type of payout is usually six months.
Should you purchase this type of coverage? It depends. Some people are better off just purchasing enough term life insurance to cover the mortgage amount. Some term insurance policies offer job loss protection insurance. Now that the basics of mortgage unemployment insurance are changing, they are more publicly advertised. Especially with the state of the economy, more people are in need of this type of insurance, and with need come more publicized services.
Since its inception about fifty years ago, D&O insurance has evolved into a family of products responding differently to the needs of publicly traded companies, privately held businesses and not-for-profit entities and their respective board members, officers and trustees.
Directors’ & Officers’ Liability, Executive Liability or Management Liability insurance are essentially interchangeable terms. However, insuring agreements, definitions, exclusions and coverage options vary materially depending upon the type of policyholder being insured and the insurer underwriting the risk. Executive Liability insurance, once considered a necessity solely for publicly traded companies, particularly due to their exposure to shareholder litigation, has become recognized as an essential part of a risk transfer program for privately held companies and not-for-profit organizations.
Optimization of protection is a common goal shared by all types of organizations. In our opinion, the best way to achieve that objective is through engagement of highly experienced insurance, legal and financial advisors who work collaboratively with management to continually assess and treat these specialized enterprise risk exposures.
Private Company D&O Exposures
In 2005, Chubb Insurance Group, one of the largest underwriters of D&O insurance, conducted a survey of the D&O insurance purchasing trends of 450 private companies. A significant percentage of respondents gave the following reasons for not purchasing D&O insurance:
did not see the need for D&O insurance,
their D&O liability risk was low,
thought D&O risk is covered under other liability policies
The companies responding as non-purchasers of D&O insurance experienced at least one D&O claim in the five years preceding the survey. Results showed that private companies with 250 or more employees, were the subject of D&O litigation during the preceding five years and 20% of companies with 25 to 49 employees, experienced a D&O claim.
The survey revealed 43% of D&O litigation was brought by customers, 29% from regulatory agencies, and 11% from non-publicly traded equity securities holders. The average loss reported by the private companies was $380,000. Companies with D&O insurance experienced an average loss of $129,000. Companies without D&O insurance experienced an average loss of $480,000.
Some Common Examples of Private Company D&O Claims
Major shareholder led buy-outs of minority shareholders alleging misrepresentations of the company’s fair market value
purchaser of a company or its assets alleging misrepresentation
sale of company assets to entities controlled by the majority shareholder
creditors’ committee or bankruptcy trustee claims
private equity investors and lenders’ claims
vendors alleging misrepresentation in connection with an extension of credit
consumer protection and privacy claims
Private Company D&O Policy Considerations
Executive Liability insurance policies for privately held companies typically provide a combination or package of coverage that includes, but may not be limited to: Directors’ & Officers’ Liability, Employment Practices Liability, ERISA Fiduciary Liability and Commercial Crime/ Fidelity insurance.
D&O policies, whether underwritten on a stand-alone basis or in the form of a combination-type policy form, are underwritten on a “claims-made” basis. This means the claim must be made against the Insured and reported to the insurer during the same effective policy period, or under a specified Extended (claims) Reporting Period following the policy’s expiration. This is a completely different coverage trigger from other liability policies such as Commercial General Liability that are traditionally underwritten with an “occurrence” trigger, which implicates the insurance policy that was in effect at the time of the accident, even if the claim is not reported until years later.
“Side A” coverage, which protects individual Insureds in the event the Insured entity is unable to indemnify individuals, is a standard agreement contained within many private company policy forms. These policies are generally structured with a shared policy limit among the various insuring agreements resulting in a more affordable insurance product tailored to small and mid-sized enterprises. For an additional premium, separate policy limits may be purchased for one or more of each distinct insuring agreement affording a more customized insurance package.
Also, policies should be evaluated to determine whether they extend coverage for covered “wrongful acts” committed by non-officers or directors, such as employees, independent contractors, leased, and part-time employees.
Imputation of Knowledge & Severability
Coverage can be materially affected if an Insured individual has knowledge of facts or circumstances or was involved in wrongful conduct that gave rise to the claim, prior to the effective date of policy under which the claim was reported. Policies differ as to whether and to what extent, the knowledge or conduct of one “bad actor” may be imputed to “innocent “individual Insureds and / or to the Insured entity.
“Severability”, is an important provision in D&O policies that is often overlooked by policyholders until it threatens to void coverage during a serious pending claim. The severability clause can be drafted with varying degrees of flexibility– from “partial” to “full severability.” A “full severability” provision is always most preferable from an Insured’s standpoint. Many D&O policies, impute the knowledge of certain policy-specified senior level officer positions to the Insured entity. That imputation of knowledge can operate to void coverage that might have otherwise been available to the Insured entity.
M&A and “Tail Coverage” Considerations
The “claims-made” coverage trigger is critically important in an M&A context where contingent liability risks are inherent. In these contexts, it’s important to evaluate the seller’s policies’ options to purchase a “tail” or “extended reporting period” for each of the target company’s policies containing a “claims-made” trigger.
A “tail” coverage option allows for the reporting of claims alleging “wrongful acts” that occurred during the expired policy period, yet were not actually asserted against the Insured until after the policy’s expiration, but instead were asserted during the “extended reporting” or “tail” period. An acquiring company’s insurance professional should work closely with legal counsel’s due diligence team to identify and present alternatives to manage contingent exposures.
What a Director or Officer Doesn’t Know Will Hurt Them
Directors’ & Officers’ Liability insurance policies were originally created solely to protect the personal assets of the individuals serving on public company boards and executive officers. In 1992, one of the most prominent D&O insurers led a major transformational change in D&O underwriting by expanding coverage to include certain claims against the insured entity. Entity coverage for publicly traded companies is typically restricted to securities claims, while privately held companies and not-for-profit organizations benefit from more comprehensive entity coverage because they lack the public securities risk exposure of publicly traded companies.
The “Claims- Made” Coverage Trigger
D&O policies are universally underwritten on a ‘claims-made’ basis. This translates to an unequivocal contractual requirement that the policyholder report claims made against an Insured to the insurer during the effective policy period. The only exception is in the case where an optional reporting ‘tail’ is purchased which affords the Insured the ability to report claims during a specified “extended reporting period,” as long as the wrongful act occurred during the effective period of the immediately preceding policy.
D&O policies issued to public companies generally contain no explicit duty to defend and some require the Insured to select from a pre-approved panel of pre-qualified defense counsel. In contrast, many private company D&O policies do contain a provision placing the defense obligation squarely upon the insurer, and still other policies contain options allowing the defense to be tendered by the Insured to the insurer within a specific period of time. Some D&O policies contain defense cost provisions that require an allocation or sharing of the defense costs between the Insured and Insurer, based upon a determination of covered versus non-covered allegations.
D&O policies typically contain a “settlement hammer” provision. This clause operates to limit an insurer’s obligation to indemnify in the event the Insured refuses to consent to a settlement that is acceptable to the insurer. Some policies may express the amount the insurer will pay for covered loss under this circumstance as a percentage of the ultimate covered settlement or judgment. Other D&O policies may limit their economic exposure to the amount for which the case could have historically settled, but for the Insured’s refusal.
Regulatory Proceedings and Investigations
Most D&O insurance policies afford qualified protection against “regulatory and governmental” investigations, “administrative or regulatory proceedings,” and criminal proceedings. Policies often require the proceedings to be directed against a natural person Insured, to be commenced and maintained in a manner specified in the policy, such as a ‘formal’ order of investigation, and only for policy-defined defense expenses incurred after the issuance of a formal order or an indictment.
D&O policies’ definitions and other corresponding provisions and exclusions vary, and should be carefully evaluated to determine whether they encompass informal investigations from the time a subpoena is received, or from the time an Insured person is identified in writing as a person against whom charges may be filed.
Learning the A,B,C’s and D’s of D&O Coverage
The three main Insuring Agreements found in public company D&O policies, are typically referenced as “Side A, B, and C coverage”. They are sometime supplemented with an optional Coverage D.
“Side A “Coverage – Individual Insured Coverage
“Side A Coverage,” also known as the “Non-Indemnifiable Loss Insuring Agreement,” provides coverage to individual officers and directors against claims for their policy-defined wrongful acts in their official capacities, under fairly rare circumstances in which the Insured entity either cannot or will not provided indemnification.
The policy’s “Side A” coverage for non-indemnifiable claims against directors and officers, almost universally provides that no retention is required to be paid by individual Insureds. A separate “Side A” limit may be available in addition to the traditional D&O policy’s aggregate limit of liability. “Side A” excess D&O policies have become more commonplace in the past several years, and certain “Side A” excess policies may also offer “difference in conditions” (‘DIC’) coverage that generally provides a feature of ‘dropping down’ to respond to claims either not paid by the primary or underlying D&O policy insurer, or in the event indemnification is unavailable from the Insured entity, the underlying limits are eroded by covered claims against the entity, or the underlying D&O insurers deny coverage to the directors. Some Side A policies are underwritten as non-rescindable by the insurer. Purchasers of this coverage should also consider, if available, an option for reinstatement of policy limits for the outside directors, in the event of premature policy limit exhaustion.
“Side B” Coverage – Corporate Reimbursement Coverage
This insuring agreement reimburses the Insured entity for covered loss under claim circumstances where the corporation is indemnifying its directors and officers. This provision does not afford any coverage to the Insured entity for its own potential liability, and is subject to a self-insured retention (“SIR”) that must be paid by the Insured entity before an Insurer will make any payments. It’s important to note that many Insureds do not realize they are contractually obligated to obtain the insurer’s prior consent to incur costs and expenses, and only those costs and expenses approved in advance by the insurer will be deemed to have satisfied the Insured entity’s SIR obligation. It’s important for policyholders to understand they run a serious risk of losing some or all of their otherwise available coverage, if they incur legal expenses prior to reporting the claim, or if they enter into negotiations or reach a settlement agreement in principle without the insurer’s prior knowledge and consent.
“Side C” Coverage – Entity Coverage
This insuring agreement affords coverage to the publicly traded Insured entity only for it own liability and is typically restricted to coverage for securities-related claims. “Securities Claims” is a policy-defined term, encompassing only claims arising from the Insured entity’s own securities. Privately held companies and organizations are afforded substantively different coverage under this insuring agreement.
“Side D” Coverage – Outside Entity Insured Person Coverage
This insuring clause is available as an option on most D&O policies. It provides coverage to designated “Insured Persons”, for their liability as a result of their membership on an “Outside Entity” board. This coverage applies on a “double excess” basis, meaning it is triggered after the exhaustion of any indemnification provided by the Outside Entity to the Outside Entity director, as well as any insurance coverage available from the Outside Entity. Traditional D&O policies typically extend automatic coverage to insured Individuals who are designated by the policyholder to participate as a board member of a not-for-profit organization.
Some Additional Considerations
In addition to the topics highlighted earlier, D&O insurance purchasers should gain familiarity with how their policies may respond under bankruptcy situations, potential coverage issues arising from a Special Committee’s investigative activity, potential issues involving priority of payments among Insureds, hidden D&O insurance program design flaws that can render excess D&O policies unresponsive to catastrophic claims, and the changing requirements of international D&O coverage to remain compliant with local country regulations. These topics will be covered in a future article.
This article provides general information and is neither intended to provide any legal advice nor to provide any advice with regard to the specific interpretation or operation of any insurance policy. Any insurance policy’s applicability is highly fact specific. Qualified legal counsel should be consulted regarding laws that may apply with respect to policy coverage interpretation in the state in which the policy will be interpreted.