National Insurance Partners 'Bridges The Gaps' in Director Coverage
April 06 2009 - 10:05AM
PR Newswire (US)
Director Protection Too Serious To Be Left Solely up to The Company
AUSTIN, Texas, April 6 /PRNewswire/ -- National Insurance Partners,
Inc., ("NIP") is pleased to announce the launch of X-PROTECT(TM), a
very broad form of D&O insurance coverage available for
independent directors. In partnership with the Executive Liability
Division of Great American Insurance Group, NIP will be the
exclusive wholesaler for X-PROTECT(TM) and will appoint a select
number of agents and brokers that specialize in Directors' &
Officers' liability insurance. Bill Harrison Jr., President of NIP
states, "With the challenging economic environment we are in,
independent directors find themselves more vulnerable than ever.
X-PROTECT(TM) will give these directors the certainty that their
personal assets are protected while fulfilling their obligations."
"Protection fears have escalated on corporate boards today--and for
good reason," adds Bill Pollock, Chairman and Founder of NIP.
"Every director of a public (and private) company should be asking
the question 'Could what happened to the Enron, WorldCom and Just
for Feet directors [having to get out their personal checkbooks]
happen to me?'" Many directors think it could not happen to them or
their company. But as a former SEC commissioner said, "My wife is a
biochemist trying to find a cure for cancer, and I'm a lawyer
trying to end securities fraud. She's going to succeed before I
do...it is human nature at some point in commercial dealings to go
too far, to try to take advantage." Even in the recent Satyam
Computer Services fraud case in India [India's Enron], could the
"truly" independent directors have prevented the inflated earnings
reported by the ex-chairman of Satyam? Mr. Roger King, Professor of
Finance at the Hong Kong University of Science and Technology, said
at a Business Conference at Indian School of Business, "there is
just no way for an independent director to know if the board is
being misled. That's why I am pressing for more liability
insurance!" Pollock adds, "This policy is the result of my efforts
to protect independent directors. Our Director Protection Plan is a
first--it is designed to help afford protection to independent
directors and emphasizes the need for directors becoming more
involved in the process including embracing corporate governance
reform." "NACD commends National Insurance Partners for including
the NACD Key Agreed Principles of Corporate Governance as part of
its new individual director liability protection program," states
Ken Daly, President and CEO of National Association for Corporate
Directors [NACD]. "Directors taking the lead to strengthen
corporate governance and oversight will go a long way in mending
the torn fabric of investor and public confidence today." NIP has
researched, analyzed and surveyed the potential for independent
directors to be held personally liable and compared the existing
coverage available for independent directors and have concluded
that they need a "state-of-the-art" D&O policy. "X-PROTECT(TM)
is a separate policy -- a unique policy -- created exclusively to
provide independent directors with state-of-the-art insurance
protection. It is a very broad form of coverage on the market for
independent directors providing a combination of primary, excess
and difference-in-conditions coverage," explains Dave Siesko,
Principal of Siesko Partners and former Chief Claims Officer for
Zurich Financial Services Global Corporate. "Traditional D&O
policies often contain exclusions in coverage leaving independent
directors vulnerable to personal liability." "This is no time to
cut back on D&O coverage for independent directors," states
Pollock -- "if we want talented people to serve as directors, the
strategists and visionaries for corporations, we need to protect
them by providing them with 'state-of-the-art' D&O insurance."
To obtain more information on X-PROTECT(TM) contact Bill Harrison
Jr. at 210.798.4917 or e-mail . About National Insurance Partners,
Inc. NIP is a Texas-based risk management, corporate governance and
financial solutions firm with offices in Houston, Austin, Dallas
and San Antonio. The firm specializes in board of director/trustee
protection, directors' and officers' liability insurance, property
and casualty insurance, risk management, executive compensation
consulting and executive and employee benefits. With a focus on
providing a pragmatic and business-oriented approach to complex
insurance and risk management issues, NIP offers innovative
solutions for directors/trustees, executives, organizations and
corporations both large and small. About Great American Insurance
Group Great American Insurance Group's roots go back to 1872 with
the founding of its flagship company, Great American Insurance
Company. Based in Cincinnati, Ohio, the operations of Great
American Insurance Group are engaged primarily in property and
casualty insurance, focusing on specialty commercial products for
businesses, and in the sale of annuities and supplemental products.
The insurers of the Great American Insurance Group are subsidiaries
of American Financial Group, Inc. (AFG), also based in Cincinnati,
Ohio. Its common stock is listed and traded on the New York Stock
Exchange ("NYSE") and Nasdaq under the symbol ("AFG"). DATASOURCE:
National Insurance Partners, Inc. CONTACT: Betty Spining, Publicist
of Spining Productions, Inc., +1-214-632-3355, , for National
Insurance Partners, Inc. Web Site:
http://www.nationalinsurancepartners.com/
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