This policy provides independent fund directors with an additional level of protection when primary insurance or indemnification cannot or will not respond. Protection includes a dedicated first-dollar excess limit for non-indemnifiable claims and a difference in conditions (DIC) feature to fill certain gaps found in traditional primary D&O policies.
Highlights:
- Protection when primary coverage refuses to perform in a timely manner or does not respond
- Covers gaps resulting from exclusions commonly found in traditional primary D&O policies (DIC feature)
- Dedicated excess limit for the directors or independent directors that is not shared with the fund
- Ability to elect blanket coverage for all directors of the fund family or solely for the independent directors
- Broad definitions of “claim” and “wrongful act”
- Full severability of the exclusions and the application
- Fully non-rescindable
- Automatic coverage provided with respect to newly formed fund series or portfolios
- No pollution exclusion
- No ERISA exclusion
- Defense costs advancement provision where not advanced by other insurance or indemnified by any fund, sponsor of any fund, or service provider to any fund
- 60-day automatic reporting period
- Bilateral extended discovery period, with a 12-month minimum
- Coverage for estates, legal representatives, and spousal and domestic partner liability
- Non-cancelable except for non-payment of premium (where allowed by law)
- Worldwide coverage
