In our last post we discussed a number of terms associated with DIRECTORS & OFFICERS LIAILITY INSURANCE (D & O). Our emphasis today is going to be to concentrate on the Policyholder’s Obligations, which will, hopefully, prevent regret on your part by falling victim to the bane of Insurance: Lack of Knowledge!
“For the most part,” Jim Bivona of Bivona Insurance Group, LLC, an Independent Insurance Agency that serves the Phoenix Metro area regarding Insurance including Phoenix, Scottsdale, Glendale, and Peoria, Arizona to name just a few, shared with degree of authority in his voice, “the Policyholder’s Obligations are Claim Related. However, there are a few others we should probably know about as well.”
These include, but are not necessarily limited to:
- You must, obviously, pay the required Policy Premium.
- You must keep the Insurer advised of Organizational Change, such as change of ownership.
- A Private Company needs to advise the Insurer if the company is going to go Public.
As Bivona shared, most of the issues you need to be aware of deal with Claims. Some of the things this encompasses are:
- Notice of Claim: Typically within a specified time frame.
- Consent to Counsel: Carrier must approve the lawyers the Insured chooses.
- Cooperation: It is required that the Insured will cooperate with the Carrier.
- Consent to Settlement: The Insured must advise the Carrier of all Settlement Discussions, and the Carrier must approve all Settlements!
Understanding your Obligations is an important aspect of D & O Coverage. As a result, you should contact Jim Bivona at 623-256-1000 with any questions, and he will be happy to discuss this concept with you in greater detail, and suggest some ways you may be able to improve your Business Coverage.
To learn more about the BIVONA INSURANCE GROUP, LLC go to www.bivonainsurance.com.
(To learn more about this issue, check out “DIRCETORS & OFFICERS INSURANCE”)