Checklist for Directors and Officers’ Insurance
From the start, directors should thoroughly assess and consider their D&O insurance. We’ve created a 10-question checklist to help directors do this review of their D&O insurance coverage.
- Do I have a copy of the indemnity deed for the company?
- Is there a copy of the directors’ and officers’ liability insurance policy wording (D&O policy) that I may look at?
- Is my name or role mentioned as an insured on the D&O policy
- What risks, errors, and claims are covered by the D&O policy?
- Is the insurance valid for the time period that I require it to be valid?
- Is the policy limit ($A) reasonable?
- Is the D&O policy the proper fit for me (for example, is the relevant company publicly traded, privately held, or not for profit)?
- What are the most frequent insurance coverage extensions, and are there any requirements unique to my sector or circumstances that should be addressed in my D&O coverage?
- Is there anything I don’t like about the exclusions?
- What should I do if a claim is made?
D&O insurance policies, as you can see from the questions above, are extremely complicated. Every business is unique. Each director is unique. You should get independent legal counsel regarding your D&O policy and the coverage it offers.
.
