Liberty Specialty Markets has updated its Directors & Officers (D&O) Liability policy wording in Australia, broadening protection with numerous enhancements including two new features: defence select and common costs allocation language.

Defence select is a new claims condition which, if selected, provides the insured the right to appoint any law firm of choice, at their market rates, to conduct the defence and settlement of a covered claim.

If defence select is not taken up, the policy provides access to a selection of panel law firms comprised of experienced defence lawyers that the insured may appoint.

Common costs allocation language specifies the basis for allocation of partially covered matters or insureds. It clarifies that, where covered defence costs also benefit a matter which is not covered or a non-insured party, the policy will cover all such defence costs.

“It’s been five years since our last policy wording update,” Australian Portfolio Manager Financial Institutions and D&O Josh Luk said.

“Our policy provides broad cover and offers innovative and constructive solutions to some common areas of frustration with D&O claims.

“We’re also prepared to commit to multi-year policies and deals for the right clients to give them further peace of mind.”

He says the last five years have been a turbulent time for D&O insurance in Australia, as many insurers withdrew and exited after severe market losses.

“Directors face an increasingly challenging operating environment and having the support of an insurer who wants to form a long-term partnership can help directors and officers confidently respond to these challenges,” Mr Luk said.

“Liberty has remained committed over that time, and we’re pleased to be able to extend our coverage and offer several unique new benefits that we know will be valued by our broking partners and clients.”