The new product, known as "A PLUS D&O UK", was revealed today at UK-based Association of Insurance and Risk Managers (AIRMIC) annual conference in Bournemouth.
The product is designed specifically for UK domiciled companies taking into consideration recent changes to the Companies Act in the UK and increasing corporate governance duties and responsibilities.
The new policy also provides excess difference-in-conditions coverage above an existing D&O liability policy.
Chief Underwriting Officer of XL's Professional Lines UK operations, Bill Wharton, commented: "We looked at the emerging risk facing directors and officers in light of changing legislation in the UK. Recent research suggests company directors are becoming increasingly concerned about accepting board positions in this uncertain legislative environment. This product offers broad protection for directors and officers where they need it most: when they are personally liable for defence costs and settlements, both of which can be extremely expensive."
Chief Underwriting Officer of XL's Professional Lines global operations, John Glancy, said: "XL's leadership position in professional lines underwriting is the result of several factors, including meeting client needs. Like other recent product launches by XL's insurance segment, "A Plus D&O UK" demonstrates our continued commitment to this market segment. "A Plus D&O UK" is a cutting-edge product backed by significant capacity and XL Insurance's financial strength."
He continued: "The development of relevant products is fundamental to our strategy to be a one-source provider of insurance to our risk management clients."
The professional liability division of XL's UK Insurance operations provides Directors & Officers Liability, Employment Practices Liability and Errors and Omissions insurance to corporations in a broad range of industries.
XL Capital Ltd, through its operating subsidiaries, is a leading provider of insurance, reinsurance coverage and financial products and services to industrial, commercial and professional service firms, insurance companies, and other enterprises on a worldwide basis. As of March 31, 2006, XL Capital Ltd had consolidated assets of approximately $58.8 billion and consolidated shareholders' equity of approximately $8.5 billion. More information about XL Capital Ltd is available at www.xlgroup.com.