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XLIB broadens SOX coverage

XL Insurance (Bermuda) Ltd (XLIB) announced that it has enhanced its broad form “Side A” D&O Coverage.

The enhanced coverage on an excess difference in conditions basis provides additional limit of liability for independent directors, defence costs coverage for Sarbanes-Oxley (SOX) Section 304 and Dodd-Frank Section 954, which impose severe financial penalties on current and former corporate executives if financial statements issued by their company are determined to have been materially inaccurate.

In addition, defence costs will be advanced within 45 days, and the policy allows for late notice to not be asserted as a coverage defence unless the insurer is materially prejudiced.

Within the definition of loss, enhancements include the express inclusion of fines for unintentional violations of law and SOX 308 fines, unintentional violations of Foreign Corrupt Practices Act or UK Bribery Act, as well as taxes imposed on the insured by reason of the company’s insolvency.

Chief underwriting officer of XLIB’s Professional Lines unit, Matthew Irvine, said: “We are constantly looking for ways to mitigate the ever evolving exposures and risks facing our corporate clients. By making these enhancements to our ‘Side A’ D&O Coverage, we are looking to provide our clients with the high level of protection and innovative solutions that they have come to expect from us.”

XLIB president Patrick Tannock added: “As XLIB is a respected leader in the Professional Lines area, it is imperative that the products and services that we offer keep pace with the dynamic industry landscape of regulatory challenges and other emerging risks. This enhancement demonstrates that.” XLIB’s Professional Lines unit provides Directors & Officers Liability, Employment Practices Liability and Errors and Omissions insurance to large corporations in a broad range of industries.

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Published March 30, 2012 at 2:00 am (Updated March 30, 2012 at 8:59 am)

XLIB broadens SOX coverage

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