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Overview of D&O Insurance Webinar

Apr 23, 2025

Charles Taylor Adjusting Webinar: Introduction to D&O Insurance

Speakers

  • Jane Dando: Chartered Specialist Adjuster for Financial Lines, based in Dubai.
  • Laura Obre: Associate Director Professional in Financial Lines, joining from London.
  • Hattem Kedder: Manager of high-value commercial losses in Saudi Arabia.

Agenda

  1. Overview of the landscape in the Middle East
  2. Overview of policy wordings
  3. Handling D&O claims
  4. Claims examples
  5. Q&A session

Key Topics

Overview of D&O Insurance in the Middle East

  • Historically less uptake of D&O insurance in the Middle East.
    • Influenced by litigation environment and family-owned businesses.
  • Increasing need due to:
    • Increasing regulation
    • Increase in litigation
    • Geopolitical and economic factors

Impact of COVID-19 Pandemic

  • Challenges for business managers:
    • Workforce protection
    • Business continuity
    • Supply chain management
  • Increase in cybercrime and IT security issues.

Regulatory Developments

  • Saudi Arabian Capital Market Authority introduced new class action regime.
  • Increase in regulatory investigations related to fraud, money laundering, and embezzlement.

D&O Coverage Overview

  • Insured Persons: Includes directors, officers, and potentially other decision-makers.
  • Types of Liability: Cover for actions within directors' duties.
    • Important during insolvency.

Types of Claims

  • Regulatory Bodies: Claims for breaches in health and safety, financial reporting, etc.
  • Investors and Shareholders: Mismanagement, failure to disclose information.
  • Liquidators and Creditors: Breaches of duties during insolvency.
  • Employees: Claims due to changes in work practices due to COVID-19.

D&O Policy Structure

  • Claims-made basis: Only covers claims during the policy period or agreed extension.
  • General Conditions: Misrepresentation, non-disclosure, other insurance clauses.
  • Coverage Elements:
    • Side A: Protects individual directors' assets.
    • Side B: Reimburses the company for indemnifying directors.
    • Side C: Covers the company itself in securities claims.

Claims Handling by Laura Obre

Key Considerations

  • Sensitivity of D&O claims due to newsworthiness.
  • Document-heavy nature of claims.

Steps in Handling a Claim

  1. Policy Period Check: Ensure claim is within the period.
  2. Claim Existence: Verify by policy definition.
  3. Involvement of Insured: Check if the claim involves an insured person or entity.
  4. Wrongful Act: Verify involvement of wrongful acts as defined.
  5. Loss Assessment: Determine costs and demand for damages.

Exclusions

  • Common exclusions include conduct, professional services, fines, etc.
  • Conduct exclusions depend on final adjudication or court decision.

Claims Examples

  • Regulatory investigations, shareholder actions, and insolvency proceedings.

Q&A Highlights

  • Importance of notifying claims early.
  • Challenges with multiple directors and small policy limits.
  • Role of loss adjusters in managing claims.
  • When VAT is recoverable.
  • Importance of brokers for first-time D&O policy buyers.

Conclusion

  • Engage with speakers for additional questions.
  • Survey for feedback.

Full transcript