Understanding the personal exposures of directors and officers presents a particular challenge for multinational companies. After all, the extent of these individuals' duties, the range of potential lawsuits and the regulatory landscape vary widely from country to country.

First, it is important to understand that a typical insurance policy for Directors and Officers (D&O) insurance is actually a bundle of different coverages protecting distinct parties against different types of liability.

The first and most-established type of coverage is a form of balance-sheet protection that provides insurance to a company when it may indemnify its directors and officers for claims made against them. But make no mistake: This type of protection, known as “Side B insurance,” is intended for the company, not its people.

Recommended For You

Want to continue reading?
Become a Free PropertyCasualty360 Digital Reader

Your access to unlimited PropertyCasualty360 content isn’t changing.
Once you are an ALM digital member, you’ll receive:

  • Breaking insurance news and analysis, on-site and via our newsletters and custom alerts
  • Weekly Insurance Speak podcast featuring exclusive interviews with industry leaders
  • Educational webcasts, white papers, and ebooks from industry thought leaders
  • Critical converage of the employee benefits and financial advisory markets on our other ALM sites, BenefitsPRO and ThinkAdvisor
NOT FOR REPRINT

© Touchpoint Markets, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more inforrmation visit Asset & Logo Licensing.