Some quick tips when it comes to D&O Renewals

Here are some quick tips when it comes to renewal proposals on D&O policies:

1. Make sure you have a copy (from the policy) of the definition of claim and the policy wording regarding incident and claim reporting.  Understand claim reporting and be sure to share the information on timing and responsibility with internal managers and staff.

2. The renewal meeting is a perfect opportunity to ask about whether or not there are any incidents or claims that should be reported. Document your file accordingly.

3. If you are moving coverage to a new Insurance Carrier:

· Be sure to review the renewal application. Check to see if there are any potential claims disclosed on the application to the new carrier that were not reported to the prior carrier.

· Be absolutely sure there is no change in the retroactive date such that would restrict prior acts coverage or any other change in terms that would preclude coverage for a claim that would have been covered under the expiring policy.

· Recommend to the client (in writing) that they report all actual claims and possible incidents to the expiring carrier within the prescribed period of time.

· If at all possible, have the new carrier except the “old carriers” application – in order to back date and utilize the same prior and pending litigation date. DO NOT have your client re-warrant the new insurance carrier’s application.

4. If you are renewing coverage, make sure you utilize the carrier’s renewal application and not a new business application. Why? The renewal application should NOT contain a claim/notice warranty question.