Buyers Wary Of D&O Policy Restrictions
There are several policy restrictions creeping into the directors and officers insurance marketplace for buyers of insurance to be aware of–but the most widespread changes are also the least worrisome, policy experts say.

The most common change is the elimination of the waiver of retention, they say. The waiver, introduced in the soft market, essentially reimbursed an insured's deductible when the insured successfully spent money to defend a case, or the case was ultimately dismissed.

“The waiver of retention was designed to alter behavior,” said Tony Galban, vice president and D&O underwriting manager for Chubb Executive Risk in Simsbury, Conn. However, “in our experience, it didn't,” he added at the Professional Liability Underwriting Society's D&O Liability & Insurance Issues Symposium in February.