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What are the two types of directors and officers insurance?

QuestionsCategory: Directors & Officers Liability InsuranceWhat are the two types of directors and officers insurance?
default avatarPlan Cover Staff asked 1 month ago

2 Answers

Best Answer

default avatarSrinivasan Mahadevan Staff answered 4 weeks ago
Directors and senior management face many personal liability risks. D&O liability insurance policy provides the cover for the personal liability of directors and helps by paying the defense costs, damages and settlement costs. 
 
Directors & Officers liability insurance typically comprises the following two insuring agreements: 

  • 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.

default avatarSrinivasan Mahadevan Staff answered 4 weeks ago
Directors and senior management face many personal liability risks. D&O liability insurance policy provides the cover for the personal liability of directors and helps by paying the defense costs, damages and settlement costs. 
 
Directors & Officers liability insurance typically comprises the following two insuring agreements: 

  • 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.

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