Wednesday, July 24, 2024

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Rising Edge launches new NED Protect D&O policy

London-based D&O specialists Rising Edge has launched a new director’s and officer’s (D&O) product, designed exclusively for non-executive directors (NEDs).

The underwriting agency said it recognised the “unique responsibilities and challenges” faced by NEDs, with NED Protect providing “ring-fenced, standalone Side A D&O coverage and policy limits for individual NEDs”.

While Rising Edge does not provide D&O coverage to financial institutions, it confirmed to Captive Intelligence that it would cover the non-executive directors of a captive if its parent is not a financial institution but a commercial business.

Philippe Gouraud, CEO of Rising Edge, said: “Recent cases have shown that when things go wrong at board level, they can go terribly wrong for NEDs, who can find themselves in an isolated position when defending a claim, in which they are personally brought in.

“We felt NEDs deserved increased protection. Innovation is at the heart of what Rising Edge does. NED Protect responds to these specific needs.”

Captive board members, including NEDs, are often covered as part of the parent’s broader D&O policy, but it is advised independent directors annually check the terms and coverage of such policies.

The Airmic Captive Governance Guide, updated in 2023, states: “For iNEDs, it is important to ensure appropriate directors’ and officers’ (D&O) insurance has been bought, either by the captive itself or, more commonly, by the corporate group with the policy including coverage for the captive’s directors.

“A certificate of insurance should be provided confirming level of cover, level of the deductible and who covers it, and the name of the D&O insurer. This should be confirmed annually. iNEDs should always ask and ensure, where possible, that they are afforded the same level of D&O cover and protection as other board members.”

Rising Edge offers its D&O policies with AM Best A- rated underwriting capacity through UK and European regulated insurance licences.

Yoel Brightman, managing director and head of underwriting at Rising Edge added: “Modern corporate governance standards means that NEDs are facing higher expectations and increased scrutiny from their roles on corporate boards. In the end, it is their personal liability that is engaged.

“In response to these increased risks, we have developed a product specifically designed for NEDs, to give them that extra level of protection in addition to what they may get from standard D&O coverage.”