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CLIENT ADVISORY Excess Follow Form D&O Coverage: Does It Really Follow Form? Excess Follow Form D&O insurance sounds straightforward. Based on the name, it?s simply a policy that provides.

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Excess liability insurance provides additional limits to an underlying policy, while umbrella liability insurance expands coverage to include claims and losses outside its initial scope.

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.

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© Copyright 1997-2025
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Form Packages
Adoption
Bankruptcy
Contractors
Divorce
Home Sales
Employment
Identity Theft
Incorporation
Landlord Tenant
Living Trust
Name Change
Personal Planning
Small Business
Wills & Estates
Packages A-Z
Form Categories
Affidavits
Bankruptcy
Bill of Sale
Corporate - LLC
Divorce
Employment
Identity Theft
Internet Technology
Landlord Tenant
Living Wills
Name Change
Power of Attorney
Real Estate
Small Estates
Wills
All Forms
Forms A-Z
Form Library
Customer Service
Terms of Service
DMCA Policy
About Us
Blog
Affiliates
Contact Us
Privacy Notice
Delete My Account
Site Map
All Forms
Search all Forms
Industries
Forms in Spanish
Localized Forms
Legal Guides
Real Estate Handbook
All Guides
Prepared for You
Notarize
Incorporation services
Our Customers
For Consumers
For Small Business
For Attorneys
Our Sites
US Legal Forms
USLegal
FormsPass
pdfFiller
signNow
airSlate workflows
DocHub
Instapage
Social Media
Call us now toll free:
1-877-389-0141
As seen in:
  • USA Today logo picture
  • CBC News logo picture
  • LA Times logo picture
  • The Washington Post logo picture
  • AP logo picture
  • Forbes logo picture
© Copyright 1997-2025
airSlate Legal Forms, Inc.
3720 Flowood Dr, Flowood, Mississippi 39232