A new line in corporate misconduct investigations coverage has been launched for company executives by insurance and reinsurance firm XL Catlin.

The directors and officers coverage has been enhanced in the wake of US federal law enforcement’s increased number of investigations of corporate misconduct by senior figures in both public and private companies.

Matthew Irvine, XL Catlin’s professional lines chief underwriting officer in Bermuda, said: “Since former US acting Attorney General Sally Yates issued what is commonly known as the ‘Yates Memorandum’ in September 2015 to all assistant US Attorneys and other key agencies setting forth the US federal government’s focus on individual accountability for corporate wrongdoing and recently with several highly-publicised director and officer criminal trials, there has been a growing need for directors and officers to review the adequacy of their insurance and indemnification protection.

“This endorsement provides enhanced coverage for alleged corporate wrongdoing investigations and proceedings.”

The extra coverage includes a $1 million reinstated limit for loss resulting from a criminal misconduct investigation or proceeding incurred after other applicable limits are exhausted, as well as coverage if the insured fails to provide testimony or produce documents based on his or her fifth amendment privilege or a requirement in a statute, rule or regulation to maintain confidentiality or concerning the obstruction of a criminal investigation.

The coverage also includes provision for defence costs in criminal proceedings, even if the conduct exclusion applies and coverage of fines or penalties if issued for non-intentional wrongdoing.

Patrick Tannock, head of XL Catlin’s Bermuda insurance operations, said: “At XL Catlin we realise that the risk landscape is constantly changing and therefore we remain focused on developing innovative solutions to address the rapidly evolving and emerging needs of existing and potential clients.

“This new offering is another example of this.”