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30/3/12
3:29 PM
Page 52
companyNEWS
Vero’s Alex Green: Enhanced protection for directors and officers
Avoiding technology traps: Axis Specialty expands its lT liability risks cover
Vero can D&O: New policy meets emerging business challenges THE AUSTRALIAN SECURITIES AND INVESTMENTS Commission’s reinvigorated focus on continuous disclosure in listed companies makes Vero’s new directors’ and officers’ (D&O) product a timely offering to Australian companies. “Directors are vulnerable in this volatile economic climate,” Vero Head of Casualty Alex Green says. “Senior executives and directors are being watched more closely than ever by their stakeholders, and even the directors of wellmanaged, successful businesses aren’t immune from the threat of litigation or civil penalties.” Mr Green says Vero’s D&O product incorporates many new features intended to bring the cover into line with emerging business challenges. These features include broadly defined key terms like loss, claim and investigation. There are also wide severability and non-avoidance provisions, and only four standard exclusions – bodily injury and property damage, intentional misconduct, prior claims and circumstances, and US jurisdiction. The new D&O product also offers pre-approved use of Vero’s legal panel at pre-agreed rates, avoiding delays and potential gaps in cover with respect to handling of legal bills by the insurer. Directors and officers insured under the Vero policy also won’t have to wait for their company’s decision on indemnity or pay a deductible in order to have access to the policy. “We believe we have a very competitive local product in this important area that has traditionally been dominated by international insurers,” Mr Green says. 52
insuranceNEWS
April/May 2012
THE SPEED AND EVER-INCREASING reach of electronic communication have expanded the risks associated with information technology. With so much sensitive information now held in cloud networks and the ability to transmit to the world at the touch of the “send” button, issues around privacy, patents and reputation are emerging hazards. Axis Specialty has responded by expanding its information technology liability product to include privacy and defamation, reputation protection expenses cover and fidelity cover. Senior Underwriter of IT and Multimedia Liability Klaus Lejon says new risks are continually emerging as the use of technology increases. He says the immediacy of the internet and social media such as Facebook and Twitter mean defamatory comments can be distributed very quickly, and businesses that handle sensitive data such as credit card details or medical records are vulnerable if there is a privacy breach. The policy includes defence costs in addition to the liability limit, patent and trade secrets cover, no exclusions for return of fees, costs of contract and other amounts paid that form part of a claims settlement, and duty to defend cover. It also responds by providing extended continuous cover if an insured changes insurer. Mr Lejon says this gives comfort to both client and broker. Clients know they have continuous cover and brokers who recommend a switch to Axis need not worry about their professional liability if the client moves and then receives a claim that precedes the new contract. Axis is offering capacity of $20 million for professional indemnity and $20 million for public and product liability and there are no restrictions on the size or profession of IT and communications providers the company will underwrite.
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