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"The decision to join forces with ACE Westchester allows us to fill a gap in a director's personal exposure and to provide him or her with long-term financial protection and security. We are pleased to be part of this product offering and value our relationship with ACE Westchester."

Steve Wilson, President, RDAUS

Why Your Exposure Changes When You Leave the Board…

  • The statute of limitations imposed on directors under the Sarbanes-Oxley Act of 2002 is five years.
  • D&O policies are typically one year policies with no guarantee of renewal. In addition, terms and conditions can change from year to year.
  • The limit of liability in most D&O policies is shared by a multitude of people as well as the corporation itself.
  • Once a director leaves the board, he or she no longer has a voice in the direction of the corporation or its decision to maintain D&O insurance.
  • There is no guarantee the corporation will be legally or financially able to meet it's indemnification obligation over such an extended period of time.
  • The legal interests of the retired directors may conflict with those of the current directors and officers. In recent cases, some insureds have been able to consume all of the D&O policy proceeds to the detriment of other insured's.