Zurich American Insurance Company, a division of Zurich North America, has unveiled a new standalone Side A directors and officers insurance coverage option tailored for US-based multinational corporations with non-US board members and officers.
Dubbed “International Towers” by Zurich Executive Universal Select, this innovative policy safeguards the personal financial assets of non-US directors and officers in the event of a management liability lawsuit, where their company may be unable to cover legal expenses due to local regulations, court rulings, or other factors resulting in non-indemnifiable losses. This new offering also addresses the escalating severity of D&O lawsuits and losses affecting multinational corporations operating in the US.
In recent years, there has been a notable rise in filings and lawsuits alleging wrongful acts by directors and officers. With conventional international D&O programs, where local policies in foreign countries are tied to the US policy, a single US case could exceed a company’s total international program limit, potentially leaving non-US directors and officers vulnerable if named in legal actions. The new Side A offering shields against the risk of personal assets being compromised.
The International Towers policy encompasses:
- A master policy was issued to the US parent company, covering Side A D&O risk for non-US directors and officers, thereby safeguarding policy limits from US losses.
- Locally admitted Side A policies issued by licensed insurers in foreign jurisdictions, ensuring compliance with local regulations and providing coverage for non-US directors and officers.
Moreover, this policy can be acquired from Zurich without Zurich serving as the primary or lead Side A carrier on the customer’s US D&O tower. Brian Zink, Head of Financial Lines for US National Accounts at Zurich North America, emphasized the importance of having dedicated non-US D&O limits amidst the increasing severity of securities class action claims in the US.
Andy Zoller, Head of International Programs at Zurich North America, highlighted how this new offering, along with Zurich’s comprehensive D&O coverage from International Towers, demonstrates Zurich’s commitment to meet evolving customer needs.
In other company updates, Zurich-owned travel insurance firm Cover-More Group has appointed Justin Sebire as interim CEO. Zurich North America has also announced significant leadership changes in its direct market and crop insurance divisions.