Directors and Officers liability insurance ? or as it is commonly known, D&O ? has been offered in Bermuda since the 1980s when ACE and XL were formed.

The Island is the leading market for D&O insurance at the multi-million dollar level, with Bermuda players having the corner on the 'excess' market.

This means that those writing this kind of insurance typically have high attachment levels, or cover risks exceeding (at a minimum) $10 million.

The products offered by Bermuda's D&O insurers include 'side A' D&O coverage, or personal asset protection for company officers and directors, or side B and C coverage which is designed more to cover the risks of the corporation.

Bermuda insurers are widely known as having pioneered 'side A' coverage, with both ACE and XL coming up with this kind of product nearly two decades ago.

This kind of coverage is much sought after by board members and company executives who want to ensure they are not hit by law suits in areas that their corporation can not or will not pay for, including protection of their personal finances.

ACE has been writing this line of business since 1986 with a proprietary product ? known as Coda, an acronym for Corporate Officers and Directors Assurance Ltd.

ACE was manager for the product from its launch and paid $250 million to acquire Coda in 1993.

XL has a similar product, called Insurance for Directors & Officers Liability (Idol).

Several of Bermuda's newer companies ? with a wave of re/insurers setting up on the Island after a void in capacity following the September 11, 2001 terrorist attacks ? also offer D&O products, including Allied World Assurance Company (AWAC), Arch Insurance, AXIS Capital and Endurance Specialty.