A recent article on D&O Insurance (Directors & Officers) provides a good reminder of the importance of this coverage to protect the personal assets of Ds & Os. The article is in Property Casualty 360 and is written by Russ Banham, a prolific and talented insurance writer (see here). Key points include:
- D&O litigation is common and virtually routine in situations where one [public] company acquires another
- The possibility that the financial limits of protection afforded by a company’s D&O insurance might be exhausted [should be of concern]
- [An additional coverage is available:] Side A insurance, a D&O policy feature providing direct coverage to an organization's directors and officers in situations where the employer is not legally required to indemnify them
- Today, it is the indemnification issue that most concerns directors and officers
Key takeaway: The D&O policy is designed to protect the personal assets of the directors and officers, and inadequate limits or the erosion of coverage from other exposures puts these personal assets at risk.
Tennant Risk Services is a specialty wholesale broker and underwriting manager, and delivers expertise, markets and exemplary services for its retail agent clients in the placement of professional liability insurance (E&O, D&O, EPL, Cyber). Call to speak to one of our wholesale broker experts with your questions and concerns about D&O exposures, or review our website for information on D&O and Side A excess.