The new offering, known as International Towers by Zurich Executive Universal Select, provides standalone Side A coverage designed to protect the personal financial assets of non-US directors and officers. This coverage becomes crucial in scenarios where the company cannot cover legal costs due to local laws, court orders, or other regulatory constraints, termed as non-indemnifiable losses.
Zurich’s initiative is a response to the escalating trend of D&O lawsuits targeting multinational companies, particularly in the US. Over the past decade, directors and officers have increasingly faced allegations of wrongful acts in their leadership capacities.
The policy addresses a common vulnerability in traditional international D&O programs where a single US litigation case could exceed the total international program limit, leaving non-US directors and officers unprotected. The International Towers policy mitigates this risk by offering a master policy to the US parent company, covering Side A D&O risks for non-US executives.
Additionally, locally admitted Side A policies, issued by locally licensed insurers, ensure compliance with regional regulations, thus safeguarding the personal assets of directors and officers in case of lawsuits.
One notable feature of the new policy is its flexibility, allowing companies to obtain coverage from Zurich without Zurich being the primary or lead Side A carrier on the US D&O tower.
Brian Zink, head of financial lines for US national accounts at Zurich North America, explained: “With the increasing severity of securities class action (SCA) claims in the US, primary D&O limits are more susceptible to being fully eroded. Having a dedicated non-US D&O limit is gaining importance among our customers for this reason.
He continued: “Individual directors and officers are most concerned about non-indemnifiable loss, as their personal assets are on the line in these situations, so we designed a solution to meet this growing need. Bringing this product to them addresses an exposure that can keep them up at night.”
Andy Zoller, head of international programs at Zurich North America, said the move showed the insurance giant was listening to its customers. “Zurich has provided international solutions for almost 50 years in the US, and this new Side A-only offering, in addition to our full coverage D&O from International Towers by Zurich, is the latest example of how we listen to our customers and solve for their evolving needs.”
He added: “Providing it to their overseas directors and officers can help these businesses attract and retain top talent. It helps assure their non-US directors and officers that they’ll have the management liability coverage they need, if or when they need it.”
Author: Joanna England
