The Three Parts of D&O Insurance

D&O insurance protects the people that run your company, the directors and officers. If you are the person that makes the decision on insurance for your company then this very well could include you. 

D&O insurance protects your directors and officers when claims are brought against them.  The D&O insurance policy can directly indemnify them even if the company cannot, for example in the case of bankruptcy.  The policy also protects the company’s balance sheet when it has to indemnify a director or officer or if the company is also named in the claim.  Coverage is usually broken down into three parts – Side A, B and C coverage.  The 2 minute video below provides an overview of each coverage and how they apply. 

These coverages are a starting point for D&O insurance.  These three coverages are the starting point of D&O insurance and your policy should be tailored to fit the needs of your company and of your directors and officers.  D&O insurance is a complex and highly customized product, it is not a once fits all policy.  

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