Retired & Resigned Insured Persons (D&O)

Retired and Resigned Insured Persons are directors or officers who chose to leave their role before the policy ended. They must not have faced disqualification action when they left. Most Management Liability policies give these people automatic Extended Reporting Period cover if the company does not renew its policy. This cover often lasts several years, commonly six to seven, and sometimes with no time limit. There is usually no extra premium. It matters because former directors can still face claims over choices made while they held the role. This automatic cover has real value. A separately bought tail policy can often cost 150% to 300% of the yearly premium. To qualify, the exit must be voluntary. Dismissal, forced resignation, or removal by a regulator usually does not qualify. This rule protects directors who served in good faith, even if the company later drops its cover.

Retired and Resigned Insured Persons are directors or officers who chose to leave their role before the policy ended. They must not have faced disqualification action when they left. Most Management Liability policies give these people automatic Extended Reporting Period cover if the company does not renew its policy. This cover often lasts several years, commonly six to seven, and sometimes with no time limit. There is usually no extra premium. It matters because former directors can still face claims over choices made while they held the role. This automatic cover has real value. A separately bought tail policy can often cost 150% to 300% of the yearly premium. To qualify, the exit must be voluntary. Dismissal, forced resignation, or removal by a regulator usually does not qualify. This rule protects directors who served in good faith, even if the company later drops its cover.