Insurers Look to Limit Virus-Related Protections for Executives

Some insurers in the U.K. are considering a potential new exclusion in policy renewals that would limit protections for company executives and directors from coronavirus-related liability, according to draft language seen by Bloomberg Law.

Such policies, known as directors and officers (D&O) liability insurance, cover legal costs for corporate leaders if shareholders accuse them of mismanagement or misstatements. Policies already in place don’t have a pandemic exclusion, but the draft renewal language would deny coverage for claims based on the Covid-19 virus or other similar viruses.

A coronavirus carveout is considered unlikely to take hold in the U.S. insurance market, ...