Marsh Launches Custom D&O Liability Solution for Singapore Charities

2013-04-02 10:14 1294

Litigation Involving Charities Exposes Directors, Even Those Who Act in Good Faith

SINGAPORE, April 2, 2013 /PRNewswire/ -- As the threat of litigation involving charities in Singapore continues to rise, Marsh today launched a directors and officers (D&O) liability solution specifically designed for directors of charities, including religious organisations.

Marsh's Charities Management Liability policy provides up to SG$3 million for legal defence costs. It covers any actual or alleged wrongful act, such as an error and omission, misstatement and/or misleading statement or a breach of duty including any violation of the Singapore Charities Act (Cap. 37), committed in the capacity as a governing board member of the charity.

The solution provides advancement in defence costs in respect of any claim alleging fraud and dishonesty -- which is typically excluded -- until conduct is established through final adjudication by a court of law. If a court finds fraud or dishonesty conduct occurred, the policy will not respond and these costs will be recovered.

The policy covers directors, officers, trustees, and committee members of charitable organisations. In Singapore, there are over 2500 registered charities and exempt charities.

"Litigation involving charities in Singapore is increasing, with many high-profile cases making headlines," noted Mr Gary Chua, Marsh's FINPRO Practice Leader for Southeast Asia. "Directors of these charitable organisations are finding themselves as exposed as their listed company counterparts. This highlights that, irrespective of organisation type, these risks are very real."

"Despite the good work that charities and their directors contribute to Singaporean society directors, even those who act in good faith, could find themselves at the centre of litigation. We urge all directors to check their current insurance arrangements to ensure there is sufficient protection."

Marsh's Charities Management Liability is offered exclusively through Marsh, and is underwritten by Catlin (Singapore) Pte Ltd., a member of the Lloyds of London insurance market.

About Marsh

Marsh, a global leader in insurance broking and risk management, teams with its clients to define, design, and deliver innovative industry-specific solutions that help them protect their future and thrive. It has approximately 26,000 colleagues who collaborate to provide advice and transactional capabilities to clients in over 100 countries. Marsh is a wholly owned subsidiary of Marsh & McLennan Companies (NYSE: MMC), a global team of professional services companies offering clients advice and solutions in the areas of risk, strategy, and human capital. With over 53,000 employees worldwide and annual revenue exceeding $11 billion, Marsh & McLennan Companies is also the parent company of Guy Carpenter, a global leader in providing risk and reinsurance intermediary services; Mercer, a global leader in talent, health, retirement, and investment consulting; and Oliver Wyman, a global leader in management consulting. Follow Marsh on Twitter @Marsh_Inc.

Source: Marsh
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