McGill adds corporate insolvency coverage for directors and officers

McGill and Partners on Tuesday launched SAIFElimits, a coverage that can be incorporated into a primary directors and officers liability policy and ensures coverage continues in the event of a corporate insolvency.

The coverage extension is triggered automatically by an insolvency event and allows coverage to remain in place for directors and officers for up to six years during the insolvency process.

Corporate insolvency can create significant D&O coverage issues, including policy expiry leading to the inability to notify claims and erosion of policy limits, McGill said.

The SAIFElimits endorsement sits in the primary wording of the D&O policy and applies throughout the D&O tower in the event of corporate insolvency, Francis Kean, partner-financial lines at McGill, said in an email.

Coverage is backed by several primary lead insurers and each risk is underwritten on an individual basis, Mr. Kean said.