What cover exists after the period of insurance ends?

  • Once a claim has been made against the Insured Person, any subsequent claims, which arose out of the same event, will be treated as if they had been made on the date as the first claim (even though they might have been made some time after the policy lapsed).
  • Once the Insurers have been notified of an event which could lead to a claim, there is no time limit on bringing the actual claim against the Insurers.
    • Example: The director made a serious management error and immediately notified the insurers. The shareholders only sued the director several years later. The policy paid despite the final claim being brought long after the policy had lapsed.
  • The Discovery Period extension allows a claim to be made in the 12 months after the Period of Insurance. The event causing the claim must have occurred after the Retroactive Date but before the end of the Period of Insurance.
  • If the Retired Directors’ or Officers’ extension provides cover for up to a further 6 years for directors who retired during the period of insurance.
Directors and Officers Liability