Chubb Introduces Specialized D&O Insurance for Small Public Companies
WARREN, NJ, January 10, 2007-The Chubb Group of Insurance Companies has introduced specialized directors and officers (D&O)
liability insurance to help protect publicly traded companies with market capitalizations of $100 million or less. These
"micro-cap" coverage enhancements can be added to Chubb's D&O liability insurance policy. Moreover, some small public company
customers may also be eligible to receive Chubb's new Non-Rescindable Endorsement.
"A D&O liability lawsuit, including settlement, judgment and legal expenses, can cost millions of dollars. This could be financially
devastating, especially for a small public company," said Tony Galban, worldwide underwriting manager for directors and officers
liability insurance business for Chubb Specialty Insurance. "Many small public companies are recognizing their growing need
for quality D&O coverage from a financially strong insurer. The micro-cap coverages bring the company's D&O coverage up to
the levels needed in today's litigious marketplace."
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Micro-cap D&O coverage highlights include:
Independent directorship liability, which may help a company attract, retain and protect outside directors by offering up
to an additional $1 million of coverage outside the D&O liability insurance policy limit for independent directors.
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Amended exclusionary conduct wording that requires final adjudication to establish fraud and illegal personal profit.
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A definition of "claim" enabling the policy to be triggered if an insured person is investigated by the Securities and Exchange
Commission, U.S. Department of Justice or similar regulatory or law enforcement authority.
Chubb's new Non-Rescindable Endorsement is designed to preserve coverage for innocent directors and officers by providing
full severability and is completely non-rescindable for all D&O policy insuring clauses.
Chubb is a leading provider of specialty liability insurance products for directors and officers, lawyers and many other professionals
in public, private and not-for-profit companies. The member insurers of the Chubb Group of Insurance Companies form a multi-billion
dollar organization providing property and casualty insurance for personal and commercial customers worldwide through 8,000
independent agents and brokers. Chubb's global network includes branches and affiliates in North America, Europe, Latin America,
Asia, and Australia.
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