It is designed to be included in any D&O policy
By Kenneth Araullo
To enhance protection for company leaders during turbulent financial times, McGill & Partners has unveiled SAIFElimits, a new solution designed to provide continued coverage for directors and officers in the event of corporate insolvency.
The scheme is designed to integrate seamlessly with existing primary directors and officers (D&O) policies, which are automatically activated upon insolvency and for a period of up to six years during insolvency proceedings. Protects the interests of directors and officers.
The background to SAFELimits is the unpredictable nature of financial stability, as evidenced by the unexpected bankruptcies of major companies such as Carillion and British Steel. D&O coverage traditionally faces challenges when a company becomes insolvent, including issues such as policy expiration, limit reductions and other protection deficiencies, which SAIFELimits was designed to address. Is.
Typically, D&O policies are purchased by companies for the benefit of their directors and officers with an implicit expectation of company solvency and annual policy renewal. This standard arrangement can result in significant barriers to directors and officers accessing policy benefits in the event of corporate insolvency.
Keeping this in mind, SAIFELImits is prepared with a set of claims handling and control provisions to address these challenges, improve coverage conditions and streamline access to insurance proceeds for directors and officers during such critical phases. Has been done
“In most situations it is the company itself which contracts, purchases and facilitates the provision of D&O insurance for its directors and officers, but in case of corporate insolvency the company cannot fulfill this function . SAIFElimits addresses several important consequences of this change, optimizing coverage and liability protection and preserving limits for directors and officers at this critical time,” said Francis Keane, Financial Lines Partner at McGill & Partners.
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