Whether your organization is a publicly held company, private company (and yes private companies should have D&O too) or nonprofit it is vitally important to have a thorough understanding of the corporate charter, its indemnification of corporate officers and directors and how the directors and officers insurance policy protects their interests and that of the entity itself.

Comment: Not all policies are the same nor are their meanings. D&O policies differ from carrier to carrier in many respects – while the primary coverage issue is to indemnify corporate Directors and Officers for defense expenses as well as settlements and judgments made against them – how each carrier does that is the real issue. There are very subtle differences.

Bottom Line: When dealing with D&O policies and coverage make sure that you have a full understanding of the terms and conditions that are incorporated into that particular policy – it may surprise you as to what and who is actually covered and how the policy will respond once a claim has been filled (that’s really when it counts).