What Is Covered?
Loss resulting from a wrongful act and will pay for:
- Damages, judgments, settlements bail bond costs, crisis costs, deprivation of asset costs, prosecution costs, public relations expenses and defence costs
- Legal representation expenses
- Losses incurred within 30 days of buy-outs by management of a subsidiary company
- Costs arising from extradition proceedings
- Tax contributions where the parent company has become insolvent and there is personal liability of an insured
- Losses incurred for civil fines and penalties
- North American exposures
- Actions between directors of the company
- Where there has been fraudulent conduct, non-disclosure misrepresentation or intent to deceive, the policy will nevertheless be maintained for each innocent director
What Is New In Elite V?
The Chubb Elite V policy wording has been developed in response to feedback received from our broker panel, and now includes as standard:
- Preservation of Side A Limit provides a reinstated limit of liability for any Side A losses should the insurer pay a loss on the Side B or Side C element of the policy
- Cyber Privacy and Confidentiality Extension provides cover for losses as a direct result of data legislation breaches or unauthorised data disclosure.
- Mitigation of Loss Extension provides an indemnity to an insured following action taken to prevent a potential loss under the policy.
- Pre-Investigation Costs Extension pays the costs incurred by an insured person following an onsite visit by an official body or notification to an official body of a possible legal or regulatory breach of duty.
- Environmental Violation Extension provides an additional limit of liability for claims deriving from actual, alleged or threatened pollution escape, including greenhouse gases, or any regulator instruction for remediation.
- Securities Entity Cover is included as standard within the policy wording.
- Reinstatement of limit if a recovery ensures the insurer reduces the impairment of the limit of liability for any recoveries.
What Constituties a Claim?
There is a broad definition of types of acts and a wide definition of wrongful act which constitute the basis of a claim, including:
- Breach of trust
- Misleading statement
- Breach of duty (including breach of duty under the Corporate Manslaughter and Homicide Act 2007 or equivalent rule in any other jurisdiction)
- Any violation of the Companies Act or any equivalent law, rule or regulation in any other jurisdiction including:
- Written demands, civil and criminal actions and administrative and regulatory proceedings
- Employment related wrongful acts including cover for any breach of employment law (common law or statute)
- Whistleblower issues
- Action raised against insured persons in respect of pollution
- Extradition proceedings
- Civil or arbitral proceedings against the company
- Criminal prosecution against the company
- Formal administrative or regulatory proceeding against the company
- Additional catch all of any matter claimed as a result of status as a director or officer of the company
What Is Included In The Definition Of Loss?
Damages, judgments, settlements and defence costs, including aggravated, punitive and exemplary damages where insurable
- Bail bond costs
- Crisis costs
- Deprivation of assets expenses
- Prosecution costs
- Public relations expenses
- Reputation protection expenses
- Advancement of defence costs
- All reasonable third party fees, costs and expenses that are incurred to defend or appeal a claim, e.g. lawyers’ fees, arbitrators’ fees, experts’ fees and other alternative dispute resolution procedure costs