What Does D&O Insurance Cover?

A Directors and Officers policy is generally structured around three coverage parts, often referred to as Side A, Side B, and Side C.

The three coverage sides:

• Side A — pays directors and officers directly when the company cannot indemnify them (e.g., bankruptcy, certain securities claims).
• Side B — reimburses the company when it indemnifies its directors and officers.
• Side C — covers the company itself for securities claims (most common in publicly traded or pre-IPO companies).

What a typical D&O policy pays for:

• Defense costs (often the largest line item).
• Settlements and judgments.
• Investigation costs in regulatory matters.
• EPLI add-on (employment-related claims) at higher tiers.

What D&O typically does NOT cover:

• Bodily injury or property damage (those are general liability).
• Criminal conduct or fraud established by final adjudication.
• Claims that arose before the policy period without prior-acts coverage.

RMO BizD&O coverage details and exclusions are described in the policy form provided at quote.