What to look for in a D&O policy?

When buying a Directors and Officers (D&O) Liability policy, it’s important to consider the following:

1. Coverage limits: Make sure the policy provides enough coverage to protect the company and its directors and officers in case of a claim.
2. Definition of “loss”: Look for a policy that defines “loss” in a way that covers both monetary damages and defense costs.
3. “Side A” coverage: Make sure the policy includes “Side A” coverage, which provides protection for individual directors and officers in case the company is unable to pay a claim.
4. “Prior acts” coverage: Confirm that the policy includes “prior acts” coverage, which provides protection for claims that arise from events that occurred before the policy was in effect.
5. Exclusions: Understand any exclusions in the policy, such as exclusions for fraud or criminal conduct.
6. Financial ratings of the insurance company: Always check the financial strength of the insurance company before purchasing the policy.
7. Additional coverage options: Check for additional coverage options, such as cyber liability, employment practices liability, etc.
8. Get professional advice: Get professional advice from a qualified insurance broker or agent who has experience in D&O liability coverage to make sure you’re getting the right policy for your company’s needs.