The new and improved Directors’ All Risk Cover (DARCstar) is here and it is continuously reviewed, revised and designed to simplify and improve the protection available to directors and officers. First launched in May 2011, the DARCstar policy is exclusive to Willis.
The DARCstar concept
DARCstar is based on the premise that many D&O liability insurance policies are too lengthy and cumbersome. The core wording is intentionally concise (12 pages), with endorsements added where applicable. It tackles the issue that more complex terms don’t always offer better protection.
The two principles on which the DARCstar concept rests are:
- A single insuring clause covering directors regardless of whether loss is indemnifiable by the company.
- Comprehensive cover for investigations and enquiries.
DARCstar D&O liability insurance
| Features | Benefits |
|---|---|
| Simplified insuring clause | Voluntary payments clause covers loss actually indemnified by the company rather than asking whether the loss is legally indemnifiable |
| D&O cover on an ‘all risks’ basis | Rather than an insured perils/affirmative cover approach, the assumption is that the risk is covered unless excluded |
| Waiver of right of subrogation by insurer against policyholder and subsidiary in all circumstances | A commitment from the insurers that they will not seek recovery from the policyholder for indemnifiable loss |
| Clear triggers for investigation costs cover across a broad spectrum of external and internal investigations | Legal costs protection tailored to the needs of directors and officers. Many traditional insurance policies impose technical requirements which must be satisfied before cost can be covered while DARCstar removes many of these obstacles. |
| Simple and transparent claims handling provisions | Greater certainty for directors in the coverage and claims handling process |
| A policy that is easy to understand | Clear, simple and concise terms |
- Advancement of all directors’ costs in the event of an allocation dispute
- No absolute exclusion in relation to the gaining of profit or advantage or fraud or dishonesty and the exclusion does not apply to defence costs
- Defence and investigation costs cover for death under the D&O policy (for death resulting in a claim against a director or officer or other insured person)
- Fully integrated Outside Directors Liability (ODL) cover
- Loss mitigation protection
- Suspended claims reporting requirements where legal restrictions apply
DARCstar contacts
Download the DARCstar brochure
Survey Report
