What are the insuring agreements in a typical directors and officers policy?

Directors & Officers liability insurance typically comprises three insuring agreements: Side A, Side B and Side C.

• Side A  – Responds when a company is unable to indemnify its directors and officers. The most common example of such a situation is when a company becomes insolvent. Side A coverage is often referred to as the “personal protection” part of a D&O Insurance contract.
• Side B – is the part of a D&O policy that reimburses a company for its indemnification obligation to its directors and officers. Side B provides for reimbursement for the company.
• Side C is also known as “Entity Coverage”—is the part of a D&O policy that responds to securities claims made against the company.