From mergers and acquisitions (M&A) to restructurings and beyond, directors and officers face a multitude of risks during these critical moments in their careers. To help you and your firm navigate these challenges, we have compiled a report on D&O runoff insurance. This report provides essential information to ensure you obtain the right coverage for the right individuals.
Runoff coverage is crucial for long-tail liability risks
Runoff insurance is vital for managing long-tail liability risks and protecting former directors and officers from claims related to pre-transaction wrongful acts.
Extended reporting window, greater peace of mind
Policies are claims-made and reported, extending the reporting window for pre-transaction claims to align with statutes of limitations, often up to six years.
Motivations for coverage are wide-ranging
Obtain runoff insurance to protect former leadership, mitigate post-closing litigation, fulfill indemnification obligations, facilitate transactions and meet legal or contractual requirements.
Keep in mind costs
The cost of runoff insurance is typically higher than the annual premium, ranging from 150% to 250% of the annualized premium for a 6-year reporting window and is paid as a lump sum.
Reach out to a trusted Willis expert and download our report, “Understanding runoff insurance: Mechanics, motivations and costs,” to gain the detailed information and practical guidance you need. By comprehending the mechanics of runoff insurance, the motivations for purchasing coverage and other key considerations, you can make more informed decisions for your organization and its former leaders.
WTW hopes you found the general information provided here informative and helpful. The information contained herein is not intended to constitute legal or other professional advice and should not be relied upon in lieu of consultation with your own legal advisors. In the event you would like more information regarding your insurance coverage, please do not hesitate to reach out to us. In North America, WTW offers insurance products through licensed entities, including Willis Towers Watson Northeast, Inc. (in the United States) and Willis Canada Inc. (in Canada).
