What is a D&O policy? (Policy layout/construction)

The policy provides cover through two Insuring Agreements and several extensions.

  • Insuring Agreement A - provides protection to directors, managers and supervisors for wrongful acts committed whilst carrying out their duties associated with the management of the company.
  • Insuring Agreement B – refunds the company for the legal and other expenses it paid in defending the directors and managers.
  • Policy extensions – augment the cover provided by the policy. For example, the Reputation Protection Expenses extension pays costs in communicating an award which declares the Insured Person innocent. 
Directors and Officers Liability