Run off insurance is an important consideration for an organisation and its management when considering long-tail exposures. A claims made policy requires that a current policy be in place if any claim is to be accepted by an insurer. Without prudent deliberation following a change in control or policy non-replacement, individuals may be unnecessarily at risk.
In this article, we will explore the concept of run off insurance in the context of the following coverages:
- Directors and officers liability insurance
- Employment practices liability insurance
- Management liability insurance
- D&O insurance for nonprofits
You may also find that similar concepts apply to a broad range of financial lines insurances, such as professional indemnity insurance, cyber insurance, and even crime insurance to a certain extent. Keep in mind, however, that each policy is strictly interpreted according to its own terms and conditions.
1 Run off insurance: A definition
2 Relationship to a claims made policy
3 The significance of prior acts coverage
4 The consequences of a change in control
5 Why does a policy convert into run off?
6 How a policy’s conversion affects coverage
7 What is an extended reporting period?
8 Why a discovery period is a solution to non-replacement
9 Run off insurance: An example
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