Brazil sets new rules for D&O, engineering risks insurance

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Tuesday, October 18, 2016

Brazil's insurance regulator Susep has approved new rules for D&O liability insurance and engineering risks insurance.

According to industry blog Sonho Seguro, D&O insurance was initially regulated with the general rules of liability insurance. Susep, however, recently began receiving more frequent requests to clarify doubts regarding the product and decided to create a set of rules specifically for it.

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Some of the most common questions asked about D&O insurance were related to the specifics of what it would cover and whether or not it covered fines and penalties applied to directors and officers while they were performing their duties. Under the new rules, these fines and penalties can be covered by D&O policies.

Engineering risks policies now have a single basic coverage and expenses for debris removal now have limits, provided it is not less than 5% of the value of the policy. Under the previous rules, the cost of debris removal could consume a significant portion of the maximum limit of the policy. It is now also possible to purchase additional coverage to cover other costs.