When buying a Directors and Officers (D&O) Liability policy, it’s important to consider the following:
Coverage limits: Make sure the policy provides enough coverage to protect the company and its directors and officers in case of a claim.
Definition of “loss”: Look for a policy that defines “loss” in a way that covers both monetary damages and defense costs.
“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.
“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.
Exclusions: Understand any exclusions in the policy, such as exclusions for fraud or criminal conduct.
Financial ratings of the insurance company: Always check the financial strength of the insurance company before purchasing the policy.
Additional coverage options: Check for additional coverage options, such as cyber liability, employment practices liability, etc.
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.
Necessary cookies are absolutely essential for the website to function properly. This category only includes cookies that ensures basic functionalities and security features of the website. These cookies do not store any personal information.
Any cookies that may not be particularly necessary for the website to function and is used specifically to collect user personal data via analytics, ads, other embedded contents are termed as non-necessary cookies. It is mandatory to procure user consent prior to running these cookies on your website.