Welcome to United Agencies: D&O Terms and Definitions

We have prepared this informational section to help you understand the various issues surrounding D&O liability insurance. This section is comprised of the following page links:

D&O Insurance FAQs Sample D&O Claims Non-Profit D&O Considerations Duties of Directors and Officers D&O Terms and Definitions D&O Application Form

D&O Terms and Definitions:

D&O exposures and liability are not routinely understood. The understanding of common terms is an essential building block to gaining expertise.

  • Allocation: This refers to the process that determines which portion of loss is covered between the corporate entity and the Directors and Officers. The allocation process determines how much of the defense of costs are advanced and in the end how much of the settlement or judgment is covered
  • Claims-made Policy: Coverage under the policy is triggered when the claim is made during the policy period
  • Continuity Date: This is the date that a company last signed a warranty statement. It also ties back to a prior and pending litigation exclusion and a known wrongful acts exclusion in the BAM form
  • Derivative Suit: An action brought by a shareholder on behalf of the corporation against the D&O's of the company for breach of their fiduciary duty
  • Discovery: Also referred to as optional extension. The Assured may choose to elect Discovery for an additional premium usually for 12 months from the date the policy is cancelled. During this time, the company can report claims made against the D&O's for wrongful acts committed prior to the effective date of cancellation
  • Duty to Defend: The insurer appoints defense counsel and assumes the defense of a covered claim
  • Entity Coverage: Extends coverage to the company (entity) for all covered claims
  • Retroactive Date: Claims arising out of wrongful acts committed prior to this date are not covered under the policy. This is also referred to as the "Retro Date or prior acts exclusion"
  • Run-off: When the insured experiences a change in control (such as the company is sold or a change in ownership voting stock exceeds a pre-determined percentage), the policy ceases providing ongoing acts coverage for the remainder of the policy period

D&O Insurance FAQs Sample D&O Claims Non-Profit D&O Considerations Duties of Directors and Officers D&O Terms and Definitions D&O Application Form

Should you have any questions, please feel free to give us a call or CLICK HERE to get a quote for Private Company D & O Coverage

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United Agencies Small Business Insurance Division (Contact Us by Email)
525 Cordova St., Ste. 200 // Pasadena, CA 91101-2552 
Phone: 800-378-5554 - or - 626-397-4700 // Fax: 626-683-7682

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