Insurance Defense and Coverage
Coverage Types
D&O policies are structured in sides: Side A covers individual directors and officers where the company cannot indemnify them, Side B reimburses the company for indemnification it provides, and Side C covers the entity itself for securities claims.
Coverage is claims-made and typically excludes fraud and personal profit once finally adjudicated.
Alternative Names:
D&O Insurance, Management Liability Coverage
Why it Matters?
Side A coverage matters most in insolvency and derivative contexts, where the company cannot or will not indemnify and individual assets are exposed. The conduct exclusions are also structurally important: because they typically require final adjudication, defense costs are usually advanced even for alleged fraud, with recoupment rights if the conduct is later established. That advancement obligation is what makes the coverage valuable in serious matters.
Frequently Confused with
Related terms
Frequently asked questions
What are the D&O coverage sides?
Are defense costs advanced for fraud allegations?
