Side A vs Side B D&O: What’s the Difference?
Side A protects individuals when the company cannot indemnify them; Side B reimburses the company for indemnity it pays.
Both grants relate to insured individuals, but only Side B reimburses the company after it indemnifies them.
Side A can matter when law, governing documents, or financial distress prevents indemnification; its own conditions still apply. A retention or priority-of-payments clause may affect access to the limit, and defense expenses may erode what remains for settlement. Side C is a separate company grant and may compete for an aggregate. Compare each limit, retention, exhaustion trigger, indemnification definition, and payment priority in the quote. Confirm whether the insurer pays individuals directly under A or reimburses the organization under B.
Coverage Guides Related to D&O Insurance
Sources for This Answer
- The Chubb Primary Directors & Officers and Entity Securities Liability Insurance. Chubb Group of Insurance Companies; hosted by eperils; I.A–C p.1; I.C p.1; I and III.A–B pp.1–2; VI Reporting pp.3–4; XVII Spouses, Domestic Partners, Estates and Legal Representatives; XX Bankruptcy; form version 14-02-18480 (06/2012). Accessed 2026-09-25.
- Private Company Directors and Officers Liability Coverage. Travelers Casualty and Surety Company of America; I.A–C p.1; III.A–E pp.1–2; III.J–M pp.2–3; IV Exclusions pp.3–4; VI Defense and Settlement pp.6–7; form version PDO-3001 Ed. 01-09. Accessed 2026-09-25.
- Directors and Officers insurance. Insurance Information Institute (Triple-I); What D&O covers; What’s excluded?; The added value of protecting company leaders. Accessed 2026-09-25.