Directors & Officers Insurance Renewals during and after Coronavirus


As we speak, Innovio Pharmaceutical and Norwegian Cruise Lines are already facing class actions for COVID-19 claims.

Either publicly listed company or private, the directors’ duties are the same. If you were provident enough to have a Directors and Officers Liability Insurance in place, below are some of the issues that you need to consider during the renewal period.

COVID-19 related questions will be now asked by the insurers. The questions might be on the impact of the pandemic to the company but also for the plans the Board has in place to handle the risk. Questions might also dig on the financial impact of the virus in company’s financials, operations, product shortages, solvency, and cyber security.

On the other hand, COVID-19 related exclusions will now appear on some D&O policies – depending on the industry and the “exposure” of the company to the virus.

As a result of all this new sort of information the renewal process will be slow. But cover extensions will be hard or impossible to get. Therefore, starting the renewal process on time will give both insurers and insured entities the time to negotiate for the best possible terms.

Claim notification has always been the most important factor in insurer/insured relationship, not just during renewal period but throughout the period of cover. Especially after what COVID-19, we need to be more specific and careful when notifying the insurers for a possible claim. Also, we need to be extra careful when we are disclosing information for – what could be – coronavirus related or not claim.

D&O Policy is a strong Risk Mitigate weapon. Having a knowledgeable insurance intermediary, that knows exactly how to help you use this weapon, will have as a consequence that you will avoid many loopholes before during and after an insurable financial crisis.

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