{"id":2317,"date":"2022-02-16T14:07:21","date_gmt":"2022-02-16T08:37:21","guid":{"rendered":"https:\/\/www.plancover.com\/insurance\/?p=2317"},"modified":"2022-02-19T11:36:06","modified_gmt":"2022-02-19T06:06:06","slug":"types-of-do-insurance","status":"publish","type":"post","link":"https:\/\/www.plancover.com\/insurance\/types-of-do-insurance\/","title":{"rendered":"Types of D&#038;O Insurance: Side A, B &#038; C. Explained."},"content":{"rendered":"\n<p>When you need to buy or recommend a company a D&amp;O insurance policy, it is intelligent to gather as much relevant information about it as possible. In today\u2019s world, small businesses need D&amp;O insurance policies to strengthen risk management strategies. It helps them to improve their competitiveness.&nbsp;<\/p>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_66_1 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<p class=\"ez-toc-title\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a702462aba26\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a702462aba26\"  aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/www.plancover.com\/insurance\/types-of-do-insurance\/#Knowing_the_different_aspects_of_the_policy\" title=\"Knowing the different aspects of the policy\">Knowing the different aspects of the policy<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/www.plancover.com\/insurance\/types-of-do-insurance\/#Choosing_a_service_provider\" title=\"Choosing a service provider\">Choosing a service provider<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/www.plancover.com\/insurance\/types-of-do-insurance\/#Check_out_IRDAI_certification\" title=\"Check out IRDAI certification\">Check out IRDAI certification<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/www.plancover.com\/insurance\/types-of-do-insurance\/#There_are_different_insurance_products\" title=\"There are different insurance products\">There are different insurance products<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/www.plancover.com\/insurance\/types-of-do-insurance\/#Various_types_of_D_O_Insurance_you_need_to_know\" title=\"Various types of D&amp;O Insurance you need to know\">Various types of D&amp;O Insurance you need to know<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/www.plancover.com\/insurance\/types-of-do-insurance\/#More_about_side_A\" title=\"More about side A\">More about side A<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/www.plancover.com\/insurance\/types-of-do-insurance\/#More_about_side_B\" title=\"More about side B\">More about side B<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/www.plancover.com\/insurance\/types-of-do-insurance\/#More_about_side_C\" title=\"More about side C\">More about side C<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/www.plancover.com\/insurance\/types-of-do-insurance\/#Knowing_about_financial_liabilities\" title=\"Knowing about financial liabilities\">Knowing about financial liabilities<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/www.plancover.com\/insurance\/types-of-do-insurance\/#Discuss_with_the_insurer_about_the_insurance_amount\" title=\"Discuss with the insurer about the insurance amount\">Discuss with the insurer about the insurance amount<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-11\" href=\"https:\/\/www.plancover.com\/insurance\/types-of-do-insurance\/#Be_clear_about_the_premium_amount\" title=\"Be clear about the premium amount\">Be clear about the premium amount<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-12\" href=\"https:\/\/www.plancover.com\/insurance\/types-of-do-insurance\/#The_frequency_of_paying_the_premium_amount\" title=\"The frequency of paying the premium amount\">The frequency of paying the premium amount<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-13\" href=\"https:\/\/www.plancover.com\/insurance\/types-of-do-insurance\/#Read_the_terms_and_conditions_of_the_policy\" title=\"Read the terms and conditions of the policy\">Read the terms and conditions of the policy<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-14\" href=\"https:\/\/www.plancover.com\/insurance\/types-of-do-insurance\/#Buy_the_policy_after_understanding_the_types_of_D_O_insurance\" title=\"Buy the policy after understanding the types of D&amp;O insurance&nbsp;\">Buy the policy after understanding the types of D&amp;O insurance&nbsp;<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-15\" href=\"https:\/\/www.plancover.com\/insurance\/types-of-do-insurance\/#Each_side_of_the_policy_has_covers_different_aspects\" title=\"Each side of the policy has covers different aspects\">Each side of the policy has covers different aspects<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-16\" href=\"https:\/\/www.plancover.com\/insurance\/types-of-do-insurance\/#The_policy_document_has_separate_section_for_each_side\" title=\"The policy document has separate section for each side\">The policy document has separate section for each side<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-17\" href=\"https:\/\/www.plancover.com\/insurance\/types-of-do-insurance\/#Check_out_the_specific_benefits_of_the_policy\" title=\"Check out the specific benefits of the policy\">Check out the specific benefits of the policy<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-18\" href=\"https:\/\/www.plancover.com\/insurance\/types-of-do-insurance\/#Enquire_about_D_O_insurance\" title=\"Enquire about D&amp;O insurance\">Enquire about D&amp;O insurance<\/a><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\" id=\"knowing-the-different-aspects-of-the-policy\"><span class=\"ez-toc-section\" id=\"Knowing_the_different_aspects_of_the_policy\"><\/span><strong>Knowing the different aspects of the policy<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Before knowing the types of the insurance policy, it is very important to be aware of a wide range of aspects of the insurance. When you have more knowledge about the functional features and applicability of the insurance policy, you can be more confident in availing it.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"choosing-a-service-provider\"><span class=\"ez-toc-section\" id=\"Choosing_a_service_provider\"><\/span><strong>Choosing a service provider<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Selecting an insurer is one of the key measures that you need to take. There are many insurers operating in the Indian market. Choosing a suitable service provider can be difficult. But, when you seek services from a top-rated insurance broker, the task becomes easy.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"check-out-irdai-certification\"><span class=\"ez-toc-section\" id=\"Check_out_IRDAI_certification\"><\/span><strong>Check out IRDAI certification<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>You should check out whether the broker you select has the necessary certification from IRDAI. It authenticates the services of the broker. You need to enquire details about it. Ask the broker where it has the required certification from the concerned authorities.&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"there-are-different-insurance-products\"><span class=\"ez-toc-section\" id=\"There_are_different_insurance_products\"><\/span><strong>There are different insurance products<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>One of the major things you should keep in mind is there are many categories of insurance products available in the Indian market. It is vital to pick the most appropriate D&amp;O insurance policy from the offerings. Take your time to explore the various insurance policies.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"various-types-of-d-o-insurance-you-need-to-know\"><span class=\"ez-toc-section\" id=\"Various_types_of_D_O_Insurance_you_need_to_know\"><\/span><strong>Various types of D&amp;O Insurance you need to know<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>There are three types of aspects that D&amp;O insurance policy takes into account. As an executive who shoulders the responsibility of recommending the most suitable policy to a company, you must make it a priority to know about the types of D&amp;O Insurance.&nbsp;<\/p>\n\n\n\n<ul><li>Side A: Under side A, the insurance policy covers the financial liabilities of the directors\/officers, when the company can\u2019t manage the costs.<\/li><li>Side B: Under side B, the policy has the capacity to indemnify the concerned company that fails to bear the legal expenses of fighting a lawsuit.<\/li><li>Side C: Under side C, the policy takes care of the financial liabilities of the companies that are listed in the stock exchange.<\/li><\/ul>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"more-about-side-a\"><span class=\"ez-toc-section\" id=\"More_about_side_A\"><\/span><strong>More about side A<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>When you go through the detailed provisions under the side A of the policy, you will learn that the insurance protects the personal assets of the directors and officers who are facing the lawsuit. The directors\/officers should not be bothered about bearing the legal expenses.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"more-about-side-b\"><span class=\"ez-toc-section\" id=\"More_about_side_B\"><\/span><strong>More about side B<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>The side B component of the policy focuses on protecting the assets of the company. The company does not have to worry about its assets in case of a lawsuit. The insurer considers the legal costs of fighting the lawsuit.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"more-about-side-c\"><span class=\"ez-toc-section\" id=\"More_about_side_C\"><\/span><strong>More about side C<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>The side C component of the D&amp;O insurance policy is straightforward, too. If a shareholder or a group of shareholders file a lawsuit against the company, it has to hire an attorney to fight the legal battle. The insurer indemnifies the company and covers the costs of the attorney in such situations.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"knowing-about-financial-liabilities\"><span class=\"ez-toc-section\" id=\"Knowing_about_financial_liabilities\"><\/span><strong>Knowing about financial liabilities<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>It is crucial to know about the definition\/meaning of financial liabilities, in context of getting support from the policy features. You can ask the insurer about the details.&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"discuss-with-the-insurer-about-the-insurance-amount\"><span class=\"ez-toc-section\" id=\"Discuss_with_the_insurer_about_the_insurance_amount\"><\/span><strong>Discuss with the insurer about the insurance amount<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>From a practical viewpoint, it is essential to have transparent ideas about the insurance amount you or your company wants. It is rational to discuss the issue with the insurer before purchasing the policy.&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"be-clear-about-the-premium-amount\"><span class=\"ez-toc-section\" id=\"Be_clear_about_the_premium_amount\"><\/span><strong>Be clear about the premium amount<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>You also have to know about the premium amount you need to pay to the insurer. There are various slabs or brackets. Each slab or bracket of insurance amount has a unique premium to be paid to the insurer. The policy document mentions it.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"the-frequency-of-paying-the-premium-amount\"><span class=\"ez-toc-section\" id=\"The_frequency_of_paying_the_premium_amount\"><\/span><strong>The frequency of paying the premium amount<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>While buying a D&amp;O insurance policy, you also need to know about the frequency at which you have to pay the premium amount to the insurer. In most of the cases, you have to pay annually. But, there are situations in which you can pay quarterly or monthly.&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"read-the-terms-and-conditions-of-the-policy\"><span class=\"ez-toc-section\" id=\"Read_the_terms_and_conditions_of_the_policy\"><\/span><strong>Read the terms and conditions of the policy<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>It should be a priority to read the terms and conditions of the policy document of D&amp;O insurance. When you have doubts, do not hesitate to ask relevant questions to the insurer. Clear response can give you insights about the applicability of the policy.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"buy-the-policy-after-understanding-the-types-of-d-o-insurance\"><span class=\"ez-toc-section\" id=\"Buy_the_policy_after_understanding_the_types_of_D_O_insurance\"><\/span><strong>Buy the policy after understanding the types of D&amp;O insurance&nbsp;<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Decide to purchase the policy only after you have understood the types of D&amp;O insurance. It means you need to attain basic ideas about side A, side B, and side C components of the insurance policy.&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"each-side-of-the-policy-has-covers-different-aspects\"><span class=\"ez-toc-section\" id=\"Each_side_of_the_policy_has_covers_different_aspects\"><\/span><strong>Each side of the policy has covers different aspects<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>By now, you might have got ideas that each side of the D&amp;O insurance policy focuses on different aspects of the company and its directors\/officers\u2019 assets. Overall, the approach of the insurer is comprehensive, when it comes to providing coverage to the accused.&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"the-policy-document-has-separate-section-for-each-side\"><span class=\"ez-toc-section\" id=\"The_policy_document_has_separate_section_for_each_side\"><\/span><strong>The policy document has separate section for each side<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>When you thoroughly go through the policy document of D&amp;O insurance, you will notice that there are separate sections explaining each of the sides of the policy. Do not neglect the major points that are mentioned.&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"check-out-the-specific-benefits-of-the-policy\"><span class=\"ez-toc-section\" id=\"Check_out_the_specific_benefits_of_the_policy\"><\/span><strong>Check out the specific benefits of the policy<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>It is one of the major tasks of the buyer or recommended to check out the various beneficial features of the insurance policy. It helps in assessing the effectiveness of the policy in corporate risk management issues. Also, the potential buyer becomes more confident about paying premium and getting results, when needed.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"enquire-about-d-o-insurance\"><span class=\"ez-toc-section\" id=\"Enquire_about_D_O_insurance\"><\/span><strong>Enquire about D&amp;O insurance<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>You can call PlanCover and ask questions about different functional features and types of D&amp;O Insurance Policy. The agency has full-proof expertise in dealing with various kinds of insurance policies for the corporate sector, as a reputable broker. You will get the help you need.&nbsp;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>When you need to buy or recommend a company a D&amp;O insurance policy, it is intelligent to gather as much relevant information about it as possible. In today\u2019s world, small&#8230;<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"cybocfi_hide_featured_image":"","footnotes":""},"categories":[37],"tags":[],"_links":{"self":[{"href":"https:\/\/www.plancover.com\/insurance\/wp-json\/wp\/v2\/posts\/2317"}],"collection":[{"href":"https:\/\/www.plancover.com\/insurance\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.plancover.com\/insurance\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.plancover.com\/insurance\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.plancover.com\/insurance\/wp-json\/wp\/v2\/comments?post=2317"}],"version-history":[{"count":2,"href":"https:\/\/www.plancover.com\/insurance\/wp-json\/wp\/v2\/posts\/2317\/revisions"}],"predecessor-version":[{"id":2404,"href":"https:\/\/www.plancover.com\/insurance\/wp-json\/wp\/v2\/posts\/2317\/revisions\/2404"}],"wp:attachment":[{"href":"https:\/\/www.plancover.com\/insurance\/wp-json\/wp\/v2\/media?parent=2317"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.plancover.com\/insurance\/wp-json\/wp\/v2\/categories?post=2317"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.plancover.com\/insurance\/wp-json\/wp\/v2\/tags?post=2317"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}