Corporations may prefer to pay these costs rather than face a rock-hard D&O insurance market and the seemingly "deny first and ask questions later" attitude of many claims handlers nowadays, or go through the hassle of creating a trust or other alternative arrangement for indemnification. (Credit: OpturaDesign/Shutterstock.com)
Large companies with strong financial conditions may opt to forgo purchasing coverage for claims made against directors or officers that are indemnified by the company (Side B) and coverage for claims made directly against a company (Side C) D&O coverages in favor of funding out-of-pocket losses they can legally indemnify.
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