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Chubb Group of Insurance Companies: Economic Volatility Puts Personal Assets of Independent Directors at Risk

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  Published in Business and Finance on Wednesday, June 17th 2009 at 8:22 GMT, Last Modified on 2009-06-17 08:22:46 by Market Wire
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WARREN, NJ--(Marketwire - June 17, 2009) - "Shrinking company profits and stock price fluctuations are exposing independent directors to increased personal liability," said Tony Galban, senior vice president, Chubb & Son, and underwriting manager for Chubb's directors and officers liability insurance. "As the potential for independent directors to be held personally liable rises, they have a vested interest in making sure their organizations are following the latest corporate governance best practices."

With this in mind, the Chubb Group of Insurance Companies has updated its "Loss Prevention Guidelines for Independent Directors" handbook. The 2009 edition includes new sections on topics such as holding executive sessions without management present; managing financial and industry-related risks; and ensuring legal compliance with anti-discrimination and employment laws, business conduct codes, and antitrust and competition laws. The guide also covers the importance of corporate indemnification and liability insurance protection for independent directors.

"Chubb's handbook has been popular with risk managers," said Galban. "In light of today's economic turbulence, we encourage risk managers to obtain and share the new edition with their companies' board members and to carefully review their organizations' current corporate governance practices."

The member insurers of the Chubb Group of Insurance Companies form a multibillion dollar organization providing property and casualty insurance for personal and commercial customers worldwide through 8,500 independent agents and brokers. Chubb's global network includes branches and affiliates throughout North America, Europe, Latin America, Asia and Australia. For more information, visit [ www.chubb.com ].