Ask the “right” questions about D&O liabilities and insurance before a problem arises - Julia Graham

Airmic and McGill and Partners have launched a new guide for directors and officers. Perfecting Governance; Liability challenges and questions aims to provide an insider’s guide to directors’ and officers’ liability insurance (D&O) for end users, and for board members in particular.

Twelve questions make up the core of the guide, focusing on practical issues that commonly arise.

There tends to be a mystique surrounding D&O insurance, the report acknowledges, which often results in a disconnect between the product and its end users, creating the risk of a significant expectation gap in the event of a claim.

The reasons for this mystique include: D&O polices tend to be relatively complex; no two D&O policies are the same or even directly comparable; and the general approach of D&O insurers is to provide cover on an affirmative basis.

Julia Graham, CEO, Airmic, commented: 

“Asking the ‘right’ questions about directors’ and officers’ liabilities and insurance, before a problem arises, makes good management sense.

“This guide is an important contribution to our members who support their leadership, as they collectively navigate an increasingly complex world and associated governance responsibilities.”

After seeing a preview of the guide, one Airmic member commented: “Don’t wait until you have a claim, read this guide and get comfortable now.”