McGill and Partners, the global boutique specialist (re)insurance broker, has launched a ready-made and self-contained coverage solution for corporate insolvency, known as SAIFElimits.
This innovative offering is designed to seamlessly integrate into primary directors’ and officers’ (“D&O”) policies, automatically triggering coverage upon the occurrence of an insolvency event.
SAIFElimits is specifically engineered to address the challenges faced during corporate insolvencies and enables directors and officers to enjoy protection for up to six years throughout the insolvency process.
The unpredictable risk of insolvency, even for large companies, can emerge suddenly and without warning, as exemplified by cases like Carillion, British Steel, Silicon Valley Bank, Greensill Capital, and others.
Corporate insolvency can introduce or exacerbate significant D&O coverage issues, such as policy expiration leading to the inability to report claims, limit depletion, and other deficiencies in the protection available to directors and officers.
D&O policies are typically procured by a company on behalf of its directors and officers, with the assumption that the company will not face insolvency and that the policy will be renewed annually.
This framework can present unique challenges for directors and officers seeking access to policy proceeds during corporate insolvency.
SAIFElimits presents a comprehensive solution, incorporating a range of claims handling and control provisions, as well as extensions aimed at enhancing coverage and streamlining the process of collecting insurance proceeds for directors and officers of insolvent companies.
This endorsement functions as a self-contained suite of coverage while maintaining advantageous provisions in the base policy, ultimately benefiting directors and officers.
Francis Kean, Partner – Financial Lines at McGill and Partners, noted, “In most situations it is the company which contracts for, procures, and facilitates the provision of D&O insurance for its directors and officers, but in the case of a corporate insolvency the company cannot fulfil this function. SAIFElimits addresses a number of significant consequences of this change, optimising coverage and liability protection and preserving limits for directors and officers at this critical time.”
