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Does D&O cover bodily injury?

default avatarPlan Cover Staff asked 2 years ago
1 Answers

Best Answer

default avatarSrinivasan Mahadevan answered 2 years ago

D&O liability insurance affords protection to directors and officers from liability arising from actions connected to their corporate responsibilities. The policy provides indemnity to the directors and officers in respect of:
• Legal costs in defending proceedings brought against them alleging wrongful acts.
• Any damages awarded to the claimants against the Directors and Officers, including out of court settlements.

A common exclusion in all D&O liability insurance policies is losses arising due to “Bodily injury and Property damage”.
The purpose of the bodily injury and property damage (BI/PD) liability exclusion in D&O liability insurance is to avoid an overlap in coverage between D&O policy and a Commercial General Liability( CGL) policy. The exclusion for BI/PD liability should be worded so that it applies only to claims “for bodily injury and property damage” and not “to claims based upon, arising out of, or in any way related to bodily injury or property damage.” This amendment can be taken up by way of a carve-back provision in the wordings. 
Getting an expert guidance to sort through these policies is critical. PlanCover have been providing expert guidance and support for companies purchasing these insurance policies. If you need a professional advice and support in structuring commercial insurances including health and liability insurance policies, PlanCover is the best place to visit.