D&O Liability Insurance

A D&O plan may consist of up to four insurance clauses, referred to as “sides,” that apply to the different liability scenarios that directors, officers, and organizations may face:

• Side A (non-indemnified):  This component applies to officers and directors when the organization is legally unwilling or unable to compensate them for their loss. In other words, Side A safeguards individual officers and directors against claims for which the organization won’t provide coverage.
• Side B (indemnified): Side B is the portion of the policy that typically applies to the majority of D&O claim situations. It reimburses the organization for the indemnification obligations it has to its directors and officers.
• Side C (entity securities coverage): This coverage protects corporations (as opposed to individual directors and officers) against claims resulting from the offer, sale or purchase of shares of their stock.
• Side D (shareholder derivative): Some D&O policies may also provide this coverage, which pays for the costs of investigations into shareholder derivative claims. These claims typically take the form of lawsuits filed by one or several shareholders on behalf of the organization against a third party (which may be an officer or director) when management fails to do so in situations involving a financial loss.

No, D&O insurance does not cover fraudulent, criminal, or intentionally wrongful acts committed by directors or officers. It provides protection against lawsuits stemming from alleged or actual wrongful acts in their capacity as leaders.

Yes, our insurance solutions can include coverage for claims related to acts that occurred in the past, as well as for former directors and officers, as long as the policy is in effect when the claim is made.

Yes, the policy limits are typically shared among all insured directors and officers, which means the policy limit is the maximum payable for all covered claims against any and all directors and officers.

Yes, directors and officers can be personally sued for decisions and actions they take in the course of managing the company, making D&O insurance crucial for financial protection.

Yes, XINSURANCE can help you even if you’ve been declined, canceled, or non-renewed by an insurance company. We step in to provide an insurance solution when others can’t or won’t.

The cost of directors and officers insurance depends on various factors including the size and type of the organization, the industry sector, the company’s finances, the levels of coverage selected, and the company’s claims history.