Having corporate Directors' & Officers' (D&O) Liability cover and Side A cover with the same insurer can leave directors and officers wide open to financial exposure; for example, if the insurer denies liability under the corporate D&O Liability policy, or, worse, becomes insolvent.
When structuring D&O Liability cover, it may make sense to keep Side A cover with an insurer who is not a major player in the corporate D&O programme.
At a glance:
- Provides difference-in-conditions cover which may provide protection when the:
- claim is not covered by the underlying corporate D&O policy;
- corporate D&O insurer(s) is insolvent; or
- corporate D&O policy is rescinded by the insurer(s)
- Fills potential gaps in corporate D&O cover
- Limits exhaustion peace of mind: a policy limit is set aside exclusively to cover claims made if the corporate D&O cover limit is depleted from paying previous claims.