Understanding the Purpose of a Pitch Deck
Too Big To Fail?: Corporate Failure
Effect of insolvency on D&O cover
2
nd
July 2018
Richard Eveleigh
Innovation Leader, Financial Lines UK, AIG
+44 (0) 7954 7189
richard.eveleigh@aig.com
FPO
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No cover for claims first made after insolvency procedure has
started.
Rare now.
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And, if he does, no cover for claims first made after insolvency
procedure has started.
Rare now.
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i.e. policy continues to end of the policy period, but claims first made
between start of the insolvency procedure and the end of the policy
period are only covered if they are for conduct before the insolvency
procedure started.
Which policies?
Generally not D&O.
Run-off from parent company’s insolvency procedure
or
Run-off for particular insolvent company (where, less usually, not the
whole group has gone down)
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Policy not renewed at the end of the policy period.
Option to purchase further period of cover - only for conduct before
the policy period expired. But useful and important for directors of
company in insolvency procedure.
Insurers not keen to renew.
Vulnerability to future claims instigated by liquidator or to
disqualification actions (and other).
Who will pay the premium? If liquidator – ominous?
Does the policy say DP is not available if there is an insolvency
procedure? Some used to.
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Where policy termination provisions do not preclude.
Broker approaching insurer for termination and return premium.
Who instructed the broker:
- directors
- the appointed insolvency practitioner
- no-one?
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Of claims arising from insolvency.
Variety of drafting and interpretation.
“insolvency”
“liquidation etc …”
“unable to pay debts within the meaning of s123 IA86”
“claim by lender for misrepresentation of financial position”
Not in standard D&O wordings. By endorsement when there is
concern.
A Pitch Deck is a powerful tool that combines detailed information about a business plan with emotional impact, similar to a Pixar pitch. It covers essential aspects such as the Business Plan Summary, Market Opportunity, Customers, Competition, Financials, all presented in a narrative clarity that engages the audience effectively.
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Presentation Transcript
Too Big To Fail?: Corporate Failure Effect of insolvency on D&O cover 2ndJuly 2018 FPO Richard Eveleigh Innovation Leader, Financial Lines UK, AIG +44 (0) 7954 7189 richard.eveleigh@aig.com
Policyholder insolvency automatically completely terminating cover No cover for claims first made after insolvency procedure has started. Rare now. Right for insurer to terminate cover completely in the event of policyholder insolvency And, if he does, no cover for claims first made after insolvency procedure has started. Rare now. 2 HIGHLY CONFIDENTIAL DO NOT COPY
Policy into run-off i.e. policy continues to end of the policy period, but claims first made between start of the insolvency procedure and the end of the policy period are only covered if they are for conduct before the insolvency procedure started. Which policies? Generally not D&O. Run-off from parent company s insolvency procedure or Run-off for particular insolvent company (where, less usually, not the whole group has gone down) 3 HIGHLY CONFIDENTIAL DO NOT COPY
Discovery Periods / Extended Reporting Periods Policy not renewed at the end of the policy period. Option to purchase further period of cover - only for conduct before the policy period expired. But useful and important for directors of company in insolvency procedure. Insurers not keen to renew. Vulnerability to future claims instigated by liquidator or to disqualification actions (and other). Who will pay the premium? If liquidator ominous? Does the policy say DP is not available if there is an insolvency procedure? Some used to. 4 HIGHLY CONFIDENTIAL DO NOT COPY
Early termination by agreement between broker and insurer Where policy termination provisions do not preclude. Broker approaching insurer for termination and return premium. Who instructed the broker: - directors - the appointed insolvency practitioner - no-one? 5 HIGHLY CONFIDENTIAL DO NOT COPY
Insolvency Exclusions Of claims arising from insolvency. Variety of drafting and interpretation. insolvency liquidation etc unable to pay debts within the meaning of s123 IA86 claim by lender for misrepresentation of financial position Not in standard D&O wordings. By endorsement when there is concern. 6 HIGHLY CONFIDENTIAL DO NOT COPY
