Absolute: see risk in a new light

Introducing ‘Absolute’

Absolute is Gallagher’s specialist Directors’ and Officers’ policy, designed specifically to protect the personal assets of senior executives against claims and allegations made by employees, the company, and other third parties. Absolute is designed to provide comprehensive protection using a broad policy wording with wider definitions and minimal exclusions. Designed by our D&O brokers and claims specialists, it affords a valuable layer of protection for directors and officers.

*cover is subject to terms and conditions

Absolute cover*

• Corporate Insolvencies

  Cover for claims made by creditors in the event of a corporate insolvency following retrospective scrutiny of company transactions, accounts, and the actions of individual directors.

• Regulatory Investigations

  Cover for the costs around regulatory investigations against individuals.

• Director v. Company

  Cover extends to the defence of individual directors against allegations they face from their own companies or shareholders.

• Criminal Actions

  Cover for the costs of defending against criminal allegations (and investigations). Note that deliberate fraudulent acts are excluded.

• Defamation Cases

  Cover for the costs of defending against allegations of defamation - a growing risk following the growth of social media platforms.

• Contract Disputes

  Cover against disputes with suppliers and customers following allegations of non-performance or non-payment.

• Workplace injuries

  Cover for claims for workplace injuries by employees, visitors, suppliers and customers, and legal costs resulting from post-accident investigations by the government, unions, or other third parties.

Benefits and features

• LIMIT OF LIABILITY

  Cover is arranged on an each and every claim basis (as opposed to aggregate), meaning that the full limit of liability is refreshed for each single, unrelated claim, including insolvency and ‘run-off’ events.

• ADDITIONAL DEFENCE COSTS AND LEGAL REPRESENTATION EXPENSES

  In the event that the overall limit of liability (including all excess D&O insurance) is exhausted, the insurer will provide an additional limit for defence costs and legal representation.

• DEFINITION OF LOSS

  There is also a very broad definition of Loss, including cover for civil fines and penalties. In addition, there is also cover for Foreign Corrupt Practices Act (FCPA) fines and penalties.

• CONDUCT EXCLUSION

  The policy will respond to fraud claims until a finding of guilt after a final, non-appealable adjudication.

• FUTURE OFFERINGS

  Automatic cover for new debt or equity offerings for publicly traded companies, except for offerings in the USA or initial public offering of securities.

• OUTSIDE DIRECTORSHIP POSITIONS

  Broad cover for directors sitting on the board of other companies with consent of the policyholder, when no other protection is available.

• DEFENCE COSTS

  Clear advance of defence costs within 25 days of valid receipts
  100% pre-agreed allocation of defence costs

• PRE-CLAIM INVESTIGATIONS

  Cover provided for the costs of a director or officer who assists with an investigation prior to a wrongful act being alleged. This means that the policy responds better and earlier. No sub-limit applicable.

• NEW SUBSIDIARIES

  Automatic inclusion for new subsidiaries with up to 50% of the total assets of the policyholder and 90 day period of cover provided for new subsidiaries which are not automatically included.

• TAKEOVERS AND MERGERS

  ‘Run-off’ cover pre-negotiated for a three and six year period at a favourable rate, in the event of a transaction taking place.

• POLLUTION AND BODILY INJURY COVER

  Broad pollution and bodily injury cover, including full cover for non-indemnifiable pollution clean-up costs.

• EMERGENCY DEFENCE COSTS AND LEGAL REPRESENTATION EXPENSES

  When it is not possible to gain consent from the insurer before incurring costs.

• PRIOR NOTICE EXCLUSION

  Diluted to only exclude claims or circumstances notified and accepted under a previous policy (this exclusion in many forms is triggered when a claim or circumstance has been notified, whether accepted or not).

• OTHER INSURANCE

  Specific to D&O policies, as opposed to other insurance in general, meaning that the likelihood of a dispute for when a claim should be paid is reduced, as the D&O cover will be the first port of call.

Why Gallagher Life Sciences Practice?

Our specialist Life Sciences Practice are located in The Walbrook Building in the City of London. The team offer all you would expect from one of the world’s largest brokers – specialist products and strong influence with the insurers underwriting risks in the Life Sciences sector. We offer a dependable, personal service that seek to exceed your expectations from day one.

• A specialist team with many years’ experience of working with companies in the Life Sciences Sector.

• A personal level of broking and risk management support from a niche broking team but with the backing of a global broking house providing the size and scale to ensure delivery of broad policy cover at competitive levels of pricing.

• Capability to service and advise broad range of companies from early stage through to established publicly traded global organisations.

We offer advice across a number of insurance products including:-

• Directors’ & Officers’ Liability

• Cyber Protection

• Intellectual Property Protection

• Warranty & Indemnity Insurance

• Cargo, Supply Chain & Stock Throughput

• Errors & Omissions and Professional Liability

• Human Clinical Trials Liability

* These are brief product descriptions only. Please refer to the policy documentation paying particular attention to the terms and conditions, exclusions, warranties, subjectivities, excesses and any endorsements.