Directors and Officers Insurance

Alliant > Executive Risk > Directors and Officers Liability

Directors and Officers (D&O) Liability

Directors and Officers Liability (D&O) insurance provides financial protection to individuals for any potential liability that may arise in connection with their service as directors and officers. D&O insurance policies also commonly provide coverage to the organization for its own liability, though the scope of coverage for the entity may be limited due to corporate ownership, industry sector or client preference.

Traditional D&O insurance policies include non-indemnifiable claims coverage to protect individuals, indemnifiable claims coverage to protect individuals and entity claims coverage to protect the organization for its own liability.

All of these exposures are shared under the same limit of liability:

Non-indemnifiable claims against individuals (typically referred to as Side A) are where the organization is legally precluded from indemnifying the individuals (paying the bills) pursuant to state law
Indemnifiable claims against individuals (typically referred to as Side B) are where the organization is permitted or required to indemnify the individuals for the costs of a claim
Entity coverage (often referred to as Side C) are for claims asserted directly against the organization

Side A “Difference In Conditions” policies (DIC) provide protection to the individuals only, so there is no sharing of limits with the organization itself. DIC policies are for non-indemnifiable claims only, and ensure that the individuals are protected when the organization cannot legally or financially do so. DIC policies commonly provide broader coverage to the individuals than that provided under a traditional D&O insurance policy.

D&O insurance policies are not standardized so each insurer in the marketplace has crafted their own policy form and each has their own unique appetite for risk. This means that all terms and conditions are negotiable and all terms and conditions much be negotiated.

At Alliant we understand what is at risk for executives and for the organizations themselves. We take the time to learn about our clients’ specific liability exposures and business requirements to develop an insurance program that provides the best and most appropriate degree of insurance protection. We provide our clients with an insight into the insurance marketplace – carrier information (financial condition, coverage appetite and performance metrics), pricing trends and expectations, and state of the market coverage availability. We pay attention to the details because we know that are clients are relying on us to do so. D&O is high profile so the more educated our clients are about the changing risk landscape and their changing risk profile, the more tailored their insurance program can be to address their exposures.

The Alliant Executive Risk Group brings together individuals with technical, legal, underwriting and claims experience on all types of executive risk exposures. Our product-specific practice transcends industry sectors to focus on risks faced by public and private companies and their directors, officers and others.

For more information, contact:

Brian Dunphy

Senior Vice President, Managing Director

The Specialty Leader Since 1925

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Directors and Officers (D&O) Liability

For more information, contact: