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Webcasts | COVID-19

Replay: Management liability best practice during COVID-19

April 24, 2020

The COVID-19 pandemic has caused extensive implications for many Australian business from all sectors of the economy, including large listed companies, right down to small-and-medium enterprises (SMEs). Regardless of the size of the organisation, many Directors and Officers are facing immense pressure to simply stay ahead of emerging issues as new information is being shared and made available at a rapid pace.

In this 3rd instalment of our special webinar series held on Friday 24th April, which is now available for replay, Josh Roach – Head of Marsh JLT Specialty, Pacific, along with Craig Claughton, Head of FINPRO, Marsh JLT Specialty, Pacific unpack best practices for organisations regarding their management liability or directors and officers insurances and renewals. This includes how to optimise such coverage, any exclusions to be aware of, market engagement and insurer hotspots and analytics that can support the decision making process.

Key insights the team shared in this presentation include:

  • The market for financial lines has been difficult for quite some time. As a result of COVID-19, this has been exacerbated.
  • Organisations who are approaching renewals should expect increased premiums, as well as potentially reduced limit availability and narrow cover
  • While organisations should be mindful that this is expected, COVID-19 exclusions for D&O cover is currently only seen from UK insurers
  • Australian based insurers are adopting a mature approach that will focus on particular areas of risk as opposed to making broadbrush exclusions. These focus areas that insurers will analyse include debt management, governance and compliance and focus on specific industries such as retail, travel, real-estate, hospitality and construction.
  • There has also been renewed debate surrounding Director’s duties and disclosure obligations, where a push for a temporary and targeted safe harbor against regulatory law suits and class actions limited to COVID-19 has been seen. This will need be monitored closely.
  • The Australian Government has also recently announced a suspension on insolvent trading laws, to help Directors continue to trade during the crisis rather than having to put the company into administration.
  • Early preparation is vital for the best results at renewal. Clients should engage with insurer panels at every opportunity.

The team also discussed Marsh solutions that are available right now to assist businesses with their insurance needs and requirements.

For more information regarding Management Liability and the COVID-19 crisis, please contact your broker.

This website contains general information, does not take into account your individual objectives, financial situation or needs and may not suit your personal circumstances. For full details of the terms, conditions and limitations of the covers and before making any decision about whether to acquire a product, refer to the specific policy wordings and/or Product Disclosure Statements available from Marsh on request.