D&O Coverage Flashcards
What are the 3 broad types of Exclusion clauses
Conduct
Other insurance
Specific Matter
How many common exclusions are there
7
Common D&O Exclusions
- Deliberate Fraud
- Breach of Contract
- Wrongful Termination / Discrimination
- Prior Acts
- Defamation, Libel & Slander
- Cat events
- Insured v Insured
Other common D&O Exclusions
Antitrust Exclusion
Conduct Exclusion
Commissions Exclusion
Defence Cost
FTMI - Failure to Maintain Insurance
Insured v Insured Exclusion
Does not pay for claims made by one insured party against another under the policy
(Common in most coverage)
Breach of Contract Exclusion
Claims related to breach of contractual obligations are excluded. (These are deemed intentional acts)
Prior Acts Exclusion
Only new and unforeseen risks that arise during period are covered
Issues are NOT covered if known before policy started.
Catastrophic Events Exclusion
Excludes claims made relating to cat events like natural disasters
Deliberate Fraud / Criminal Activity Exclusion
Not covered if someone willingly breaks law while doing job (Crime insurance)
Wrongful Termination / Discrimination Exclusion
Not covered under D&O
Covered under EPL
Defamation, Libel & Slander Exclusion
D&O policy does not cover leaders from saying things that could impact others
What exclusions are in DARCStar 2025
- Conduct
- Prior Claims & Circumstances
Deliberate fraud
Does not cover any costs when D&Os deliberately commit fraudulent act
Breach of contract
Any failure to meet contractual terms / contractual disputes do not fall under D&O cover.
Antitrust Exclusion
Any activities that hinder fair competition are excluded
Defence Cost Exclusion
Insurer will provide defence costs only for covered conduct
They would not provide full cover if the claim involves other uninsured conduct
FTMI Exclusion
Failure To Maintain Insurance
Does not cover if insurance could have been maintained but was not.
Commissions Exclusion
Payments to any foreign officials for advantages, which are against/prohibited under Foreign Corrupt Practices Act will not be covered
Conduct Exclusions
Certain activities or conduct will be excluded.
IPO Exclusion
Coverage will not be paid for any claims related to an IPO / offering of shares
This should be covered under POSI or via an endorsement (If US listing)
