Get Excess Follow Form D&o Coverage - Amwins

Side A coverage component provides D&O coverage to directors and officers for unindemnifiable claim situations. Side B coverage section reimburses organizations for indemnity payments made by the organization on behalf of the company's directors and officers.

When an underlying policy is exhausted, the Side-A policy provides excess coverage. As an example, a company purchasing a 25 Mill underlying full (A-B-C) D&O policy with a separate 10 Mill Side-A DIC policy effectively has a 35 Mill total limit for a non-indemnifiable loss against its directors and officers.

Many excess liability policies state that they are follow form except with respect to certain terms and conditions. When this is the case, the excess liability policy is not truly on a follow form basis.

When an underlying policy is exhausted, the Side-A policy provides excess coverage. As an example, a company purchasing a 25 Mill underlying full (A-B-C) D&O policy with a separate 10 Mill Side-A DIC policy effectively has a 35 Mill total limit for a non-indemnifiable loss against its directors and officers.

Side A coverage operates as personal asset protection. Side A DIC coverage is broader than traditional Side A coverage. Side B: Reimburses the company for costs it pays on behalf of a director or officer (typically legal defense costs, settlements, or judgments).

Side A-only coverage refers to a directors and officers (D&O) liability policy that provides only "direct" coverage of the directors and officers but does not cover the corporation's legal obligation to indemnify the directors and officers (known as Side B or corporate reimbursement coverage).

Follow-form policies are meant to help simplify and provide consistent coverage for excess liability programs. Ideally, follow form policies would provide excess coverage under the same terms and conditions as the underlying policy, that is follow the underlying form.