Your business needs insurance coverage for employees at every level, and that includes your directors and officers. D&O liability coverage can help protect your company, its employees, and its assets in the event that a claim is filed alleging wrongdoing on behalf of one of your higher-ups. There are different sides of a D&O policy that cover different needs.
Side A Coverage
This type of coverage protects individual directors and officers within your company. Under Side A coverage, these individuals are insured in order to protect their personal assets.
Side B Coverage
When a claim involves indemnifying individual directors and officers, this is when Side B coverage kicks in. This type of D&O liability coverage protects the company itself by reimbursing costs incurred in these situations.
Side C Coverage
Sometimes, the company itself may be named as the defendant in a claim. These claims can relate to issues such as cyber liability, company or stock performance, or mismanagement of fiduciary duties.
No matter what happens, looking out for the well-being of your company and its employees should be one of your top priorities as a business owner. Good D&O liability coverage helps protect you in case of problems stemming from the top of the corporate hierarchy.