Words and language can be viewed as living constructs, dynamic and evolving as we speak. But when preparing for or participating in a meeting with specialists on Directors & Officers liability (D&O) insurance or—excuse the thought—a D&O claim, it can be critically important for all parties to understand the accepted meaning of a word or an expression. Failure to do so can be a costly misstep.
To their great frustration, experienced attorneys and financial experts who are often part of this process can find it almost impossible to speak the same language as the D&O insurance specialists they’re dealing with. For this reason, we are happy and proud to be releasing our new D&O Dictionary.
This new publication replaces our older D&O Glossary with additional terms and updates in response to recent significant changes to the litigation environment as well as related developments in the world of D&O insurance coverage. We also took the opportunity to attempt to convey the significance as well as the strict meaning of the Dictionary’s terms.
We hope that this will become an essential tool for risk management practitioners attending D&O insurance renewal meetings as well as others making other key decisions about financial and executive matters.
Lost in Translation: Incomprehensible Phrases to Non-insurance Experts
The following are some examples of words or phrases that sound innocuous but that can have deadly impact.
“Correct, except that this is both a claims-made and–reported contract.”
“I would agree with you but as it happens this is a not a duty-to-defend policy.”
“Well, it would be covered but for the absolute BI/PD exclusion.”
“Yes, but while it’s Excess Coverage it’s not DIC…”
Do we have a deductible or a retention in our D&O program?
“You said WHAT in the Application?!?”
The Willis D&O Dictionary, available for download here, details over one-hundred terms and provides important context for why the term may be relevant.