Willis introduces new enhanced professional indemnity product

One UK business insurance provider, in response to a regulatory environment that they say has been becoming increasingly challenging, has introduced an enhanced professional indemnity product.

The new Directors’ All Risk Cover – also known as DARCSTAR – from commercial insurance provider Willis obtains its coverage through Willis Group’s FINEX Global.  Company directors and officers may end up being stuck with expensive legal bills thanks to the new regulations as official enquiries and investigations pile up, while insurers argue over who has the responsibility to provide indemnification to a given company, Willis stated.

The new product was developed in conjunction with insurers led by XL, QBE, and Allianz, as well as Willis’ professional liability, executive risk, and financial business.  Willis commented that its new offering cuts to the red tape of more traditional cover by advancing all costs incurred by directors in the unfortunate event of a dispute to allocation.

Less than half the length of a standard policy, the new Willis offering comes in at approximately seven pages.  DARCSTAR’s features include many new clauses, such as the one that provides a direct avenue for directors to access insurers instead of the more traditional three cover clauses.

The cover also differs in that it is specifically designed to be broad and cover all risks unless explicitly included.  This also differs from traditional policies where each possible item must be described, sometimes resulting in several pages of posible outcomes.

The new cover from the insurer guarantees that they will not go looking to recover funds from a policy holder for a loss that was indemnifiable, omits any compulsory retentions or deductibles unless called for from specific securities claims, and has clearly stated triggers for the costs of investigations over a wide variety of internal and external enquiries and investigations.

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