Electric car manufacturer Tesla made insurance headlines when CEO Elon Musk said he would pay for his company’s directors and officers liability insurance (D&O) – but recent details have emerged saying this insurance agreement ends in less than a week.
Tesla originally announced that Musk would provide the company D&O insurance in a regulatory filing in April, revealing in the same filing that it chose not to renew its previous D&O insurance policy due to “disproportionately high premiums quoted by insurance companies.”
The terms of Tesla’s indemnification agreement with Musk were not disclosed when it was originally announced, but an article on investor portal Seeking Alpha has revealed some details about the agreement, such as:
But it would appear that Tesla may soon find an insurer willing to bind insurance; sources told Insurance Insider that the Marsh JLT Specialty-brokered Tesla policy is currently circulating in the London market. Notably, this policy has an exclusion in place for CEO Elon Musk.
Sources also informed the publication that Musk was “effectively uninsurable,” thanks to his costly Twitter stunts. These stunts included boasting on social media about a potential private takeover of Tesla – which led to a Securities and Exchange Commission suit – and Musk’s tirade against a British recreational cave diver who offered to help rescue a trapped junior football team in Thailand.