Marsh LLC said on Wednesday that they have partnered with Everest Re Group Ltd. to expand its accountability initiative for directors and officials recognizing clients with superior environmental, social and governance frameworks to the Bermuda market.
A global launch of the program to the markets in the UK, Europe and Asia will follow.
Buyers seeking D&O coverage in the Bermuda market will be considered for preferred policy terms and broader coverage if they can demonstrate strong ESG data, Marsh said.
The improved program will include explicit coverage for sustainability executives and an increased limit for independent board members, says Amy Barnes, head of climate and sustainability strategy at Marsh.
Everest will initially provide up to $ 2 million in additional limits for independent board members in addition to the purchased inventory, and this is likely to increase to $ 5 million with support from other insurance companies, Barnes said.
The definition of loss has also been expanded to cover fines and penalties, she said. Fines and penalties are not usually covered by a U.S. R&D policy
The Bermuda market can cover damages, fines and penalties under a D&O policy, regardless of climate and sustainability, and insurance companies have more comfort in providing it “recognizes that they are protecting individuals, rather than the corporate body,”; she said.
Marsh last October introduced the D&O ESG initiative for US-based customers.
Barnes talked to Business insurance at the Risk and Insurance Management Society Inc.’s Riskworld conference this week in San Francisco.