Marsh’s D&O diagnostic tool for members of the BVCA

Marsh, the world’s leading insurance broker and risk adviser has created a D&O diagnostic tool for members of the BVCA.

What is the diagnostic tool?

The fact that not all D&O insurance policies are the same has led Marsh to develop a diagnostic tool for private equity backed companies. The diagnostic tool measures the effectiveness and capability of the D&O policy that a private equity business has in place.

There are many sub-standard policies which have been purchased as an ‘off the shelf’ product and historically renewed which do not offer the protection that directors and officers need in these litigious times.

Marsh’s D&O diagnostic tool is designed to very clearly and quantitatively rate different areas of coverage afforded under your existing D&O policy against a pre-ranked, prioritised group of considerations and factors. It examines some of the following areas:

• exclusions that completely negate the effectiveness of the coverage
• making sure cover is available to all who may require protection
• clearly identifying restrictive language
• in the event of an acquisition of the company, the policy will offer full protection for prior acts.

Who is it for?

The diagnostic has been designed specifically for private equity backed businesses.

The diagnostic recognises the unique nature and relationship between private equity firms and their assets.

How does it work?

We would ask the member companies who respond to provide us with a copy of the current D&O policy which we then measure against a set of questions. Once we have conducted our review, we will populate an algorithm with the responses. The algorithm has pre-determined rankings, weightings and formulae to score and rank the different aspects of your coverage.

What does it cost?

For BVCA members we would provide this free of charge.

Benefits to member firms

The diagnostic would enable us to identify the areas in need of improvement which we can correct when appointed as brokers. The provision of a “best in class” wording is not cost prohibitive.

Claims expertise

D&O claims management is increasingly complex. We have developed a market leading claims advocacy capability, backed by legally qualified practitioners who work with clients to resolve challenging and complex claims. This team will be available to member firms if and when a claim arises.

Key service team contacts

We are committed to providing a service team to member firms comprised of experienced individuals who are proactive, process driven, highly technical and have strong market relationships.

It you would like to discuss this further please contact:

James Convey
020 7357 5249

Hedley Blane

020 7357 3917

Peter Vernon
07836 238158