Chubb Group of Insurance Cos. has announced it is offering a new insurance policy to help independent directors protect their personal assets when they are sued by shareholders, creditors and others.

Chubb says the personal policy provides coverage to independent directors when certain losses are not indemnified by either the companies on whose boards they sit or by other directors’ and officers’ liability insurance policies.

“Personal Director’s Liability Insurance is tailored to the needs of individual directors and offers them a personal, dedicated limit, up to $10 million,” Chubb said in a statement. “By contrast, corporate D&O policies purchased by a corporation offer an aggregate limit shared by all directors and officers and, in many cases, the company as well. The new personal policy can be customized to cover one, all or any combination of boards upon which a director serves. The policy also allows the insured director the right to reasonably choose defense counsel.”

Chubb said a recent U.S. study by research firm Korn/Ferry International and Corporate Board Member magazine showed that nearly half of the 908 board members surveyed were concerned about their directors’ and officers’ coverage. “According to the study, 48% said they have turned down a board position because they felt the risk of being sued was too great. And 49% said directors’ and officers’ insurance was a very important factor in their decision to join particular boards.”

Trends in corporate governance in Canada and the United Stated are also fueling the need for this coverage. In the United States the passage of the Public Company Accounting Reform and Investor Protection Act of 2002 (also known as Sarbanes-Oxley) dramatically increases the level of responsibility and accountability for directors of public companies, especially those serving on audit committees.