The Everest Rappel℠ endorsement offers reimbursement of defense costs within the primary policy’s retention for qualifying securities class actions. Under this endorsement, coverage will drop down and reimburse the insured for up to 50% of the primary policy’s self-insured retention. This new coverage is granted outside the excess policy’s limit of liability, and subject to its terms and conditions.
This coverage extension is a timely offering as 2015 saw approximately one in 25 companies listed on US exchanges targeted with a Securities Class Action (SCA) filing1. During this time of heightened exposure to SCA’s, Everest’s Rappel℠ endorsement would serve to provide relief to those insureds that are successful in their motion to dismiss.
Keith Beach, Head of the Executive Solutions Group at Everest Specialty Underwriters said “With securities class action filings at the highest levels since 2008, defense costs are expected to rise accordingly. Everest is offering a unique solution to this issue by reimbursing fees and expenses that are currently self-insured within the primary retention for those insureds successful at the motion to dismiss stage.”
Further enhancing the Everest Rappel℠ reimbursement extension, Everest‘s excess D&O offering
Capacity in excess of $25 million in limits
A derivative investigative demand sub-limit
Policy issuance at binding
Backing by the Everest’s rock solid financial strength; AM Best A+ XV, S&P A+
Mike Karmilowicz, Head of Everest Specialty Underwriters, commented “As we continue to expand our
offering to meet the needs of our insureds, the introduction of the Rappel℠ endorsement is just one
example of our continued focus on innovation in the commercial insurance market.”
Everest refers to the member insurers of Everest Re Group, Ltd. Additional information on Everest Re
Group companies can be found at the Group’s web site at www.everestregroup.com. Not all insurers do
business in all jurisdictions.
Executive Solutions Group is a an underwriting unit of Everest Specialty Underwriters, LLC (ESU), which
offers commercial management liability coverage for non-financial institutions on both a primary and
This literature is descriptive only. The actual coverage is subject to the language of the policy as issued.
1 Cornerstone Research: Securities Class Action Filings, 2015 Year in Review, p. 9
Everest Re Group, Ltd. is a Bermuda holding company that operates through the following subsidiaries:
Everest Reinsurance Company provides reinsurance to property and casualty insurers in both the U.S.
and international markets. Everest Reinsurance (Bermuda), Ltd., including through its branch in the
United Kingdom, provides reinsurance and insurance to worldwide property and casualty markets and
reinsurance to life insurers. Everest Reinsurance Company (Ireland), Limited provides reinsurance to
non-life insurers in Europe. Mt. Logan Re, a segregated cell company, capitalized by the Company and
third party investors, is a specialty reinsurer of catastrophe risks. Everest National Insurance Company
and Everest Security Insurance Company provide property and casualty insurance to policyholders in the
U.S. Everest Indemnity Insurance Company offers excess and surplus lines insurance in the U.S. Everest
Insurance Company of Canada provides property and casualty insurance to policyholders in Canada. The
Company also operates within the Lloyd's insurance market through Syndicate 2786. Additional
information on Everest Re Group companies can be found at the Group’s web site at