Side B This protects the company when it decides to indemnify the participant

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Did You Know? C-suite roles have evolved from traditional CEOs and chief operating officers to include chief technical officers and chief experience officers. These newer roles reflect the greater role of technology in business and a focus on end users. What does D&O insurance cover? While a D&O policy is designed to protect directors and officers from personal financial loss in a claim, policies have different aspects that cover various situations. Here’s an overview of the three primary D&O insurance coverage types: Side A This protects directors and officers in cases where the company cannot indemnify the participants, such as in bankruptcy proceedings.


For example, if the board is sued and the company defe list of turkey cell phone numbers nds the directors, the D&O policy will reimburse the company for any defense costs. Side C Sometimes called “corporate entity coverage,” this protects the company and its corporate assets from lawsuits over financial mismanagement. This coverage comes into play if stockholders sue the business instead of the board of directors directly. A company and its board of directors are often named in a lawsuit.


By naming all parties, including the company, those filing the lawsuit have the best chance of getting restitution from one or more of those named in the suit. Duty to indemnify vs. duty to defend The D&O policy will approach legal defense in one of two ways: It will reimburse defense costs or pay them directly. There’s a bit more to this concept: Duty to indemnify: When a policy is designed with a duty to indemnify, the insured can choose their own counsel and know they’re getting the best representation possible.