Insurance Programmes and Return to Sport – Directors’ & Officers’ Liability
The WSA has been working with Insurance Partners, Watkin Davies to focus on Directors & Officers’ Insurance and the importance on ensuring there is a comprehensive programme in place, particularly during this unprecedented time.
In terms of market conditions, Watkin Davies have advised that the market conditions have been hardening for over 12 months and they are seeing Underwriters now more cautious than ever when underwriting Director & Officer risks, due to the potential risks of losses arising from the pandemic. Underwriters renewing policies will need to investigate how businesses managed the crisis operationally, in terms of managing its cashflow, their activities, furlough and any potential redundancies, as well as how the business is prepared for any future crisis.
The risks for Directors and Officers increased in recent years, and with it, policy wordings have also evolved. These sorts of policies customarily cover “loss” resulting from “claims” against an “insured” “for a wrongful act. Applying the traditional definitions of these terms, the foreseeable COVID-19 Director & Officer claim would fall within the insuring agreements, thus being potentially covered and subject to the policy’s remaining terms and limitations, in the event that a claim was brought against an organisation for not having implemented comprehensive enough procedures, drafting and managing them or adhering to them.
It is recommended that organisations fully document all changes regarding the operation of the business during the coronavirus pandemic, in compliance with Government legislation, and where possible ensure that Insurers/Brokers are kept up to date, for example, in respect of any employees who have been furloughed, any further furlough or redundancy plans, any plans to re-open the workplace / return to sport, or any changes to management structure and the way in which senior individuals are taking critical decisions (i.e. outside of the usual governance parameters).
As mentioned in last weeks article, Watkin Davies are advising companies to review policy wordings to check for COVID-19 exclusions or Communicable Diseases exclusions, as these are now becoming more and more common, and potentially risk leaving companies exposed should a potential claim be brought against the Organisation or Board Members directly.
Given that these are testing times, and sports & leisure operators are actively doing all that they can to resume their activities as well as ensuring a safe environment for those participating, Watkin Davies are offering our members a FREE independent insurance reviews, this extends to all policies, including Group Personal Accident and Travel, Liability or Professional Indemnity / Property & Business Interruption, Event Insurance / Cancellation and Directors & Officers.
If you’d like to review and discuss the cover under your existing Insurance policies, please contact the Watkin Davies Insurance team, via the WSA Watkin Davies Partner page.