Directors & Officers/Executive Risk

Often called D&O, this insurance is payable to the organization or the directors and officers of an organization, as indemnification (reimbursement) for losses suffered by an insured as a result of a legal action brought against the directors and/or officers for alleged wrongful acts. Defense costs can be included in the insurable limit or outside of the limits of insurance on the policy. There are three insuring clauses in a traditional D&O policy.

Side A

Provides coverage to individual directors and officers when not indemnified by the organization.

Side B

Provides coverage to the organization when it indemnifies the directors and officers.

Side C

Provides coverage to the organization itself for claims brought against it.