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What are the insuring agreements in a typical directors and officers policy?

QuestionsCategory: Directors & Officers Liability InsuranceWhat are the insuring agreements in a typical directors and officers policy?
default avatarPlan Cover Staff asked 2 weeks ago

1 Answers

Best Answer

default avatarSrinivasan Mahadevan Staff answered 2 weeks ago
Directors & Officers liability insurance typically comprises three insuring agreements: Side A, Side B and Side C.

  • Side A  – Responds when a company is unable to indemnify its directors and officers. The most common example of such a situation is when a company becomes insolvent. Side A coverage is often referred to as the “personal protection” part of a D&O Insurance contract.
  • Side B – is the part of a D&O policy that reimburses a company for its indemnification obligation to its directors and officers. Side B provides for reimbursement for the company.
  • Side C is also known as “Entity Coverage”—is the part of a D&O policy that responds to securities claims made against the company.  

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