This section of a D&O policy provides personal coverage for directors and officers that the corporation is not legally obligated to indemnify for. It is in place to protect a director or officer’s personal assets.
Contrary to Side A, Side B covers director’s and officer’s expenses that the corporation is legally obligated to indemnify against.
Entity Coverage is the portion of the D&O policy that protects publicly listed companies from securities claims against the entity itself, which can often end up being class action lawsuits.
Coverage for employers against claims made by employees for things such as: wrongful dismissal, failure to promote or other employment related disputes.
Pricing for D&O insurance can vary drastically as there are many factors that are taken into account when pricing out Directors and Officer’s insurance. The main factors that are taken into consideration for pricing D&O are as follows:
Typically, D&O insurance policies start at a minimum premium of $1,000 annually and based on the responses to the areas in question above it may go up from there.
The process to obtain a quote for D&O insurance begins with completing an application in detail about the entity you are looking to insure. The main areas that insurance companies are looking to review are as follows:
Once the completed application is returned to FCA, we can begin the process of marketing the policy for quoting through our D&O insurance partners.
Directors and Officers insurance is designed to specifically protect the personal assets of directors and officers. Many consider it that last line of defense to protect their personal assets. An example of this is, if a company goes insolvent and no longer has funds to fulfill it’s obligations to defend its directors and officers, then Side A coverage would kick in to cover their defense costs and any claims settlements up to the limit on the policy.
Laura does the work to get us the best prices with the best coverage. She also keeps us abreast of the new types of insurance that a business such as ours might need. Her yearly renewal visit is comprehensive to say the least, but when she leaves, we all understand the exact nature of each and every policy our business has.
FCA covers us for all our business requirements, from equipment to liability, property, builds and everything in-between. Errol Williams is so patient and helpful; I am always confident that we are getting the best possible coverage at a competitive rate. Always the best service!
Jamie and his team have been great to deal with, providing transparent advice and excellent service!