Allied World understands the need for independent directors to feel secure when they venture onto the board of another company. Our Independent Directors Liability Policy (‘IDL Policy’) provides such “outside” directors with a dedicated layer of protection for claims arising from any actual or alleged breach of fiduciary duty or other wrongful acts. The IDL Policy operates as a last line of defense by protecting the directors’ personal assets when all other sources of recovery have been exhausted or otherwise impaired (coverage for a claim is denied by an underlying insurer or an underlying policy is rescinded and the company is unable or unwilling to provide indemnification).
Portable Protection for Independent Directors
It is increasingly common for a company’s board members to sit on more than one board. However, as public scrutiny and SEC investigations of directors and officers increase, the risk of insufficient or depleted limits for independent directors continues to grow. A Portable Limit of Liability, provided by our IDL Policy, directly addresses this risk and may help to alleviate the concerns of independent directors.