Terms

Tail Coverage

Tail Coverage (also known as Extended Reporting Periods or E&O Tail Coverage) may refer to a type of insurance coverage that is designed to extend the reporting period of a...

Fiduciary Liability

Fiduciary liability may refer to the legal responsibility of a person or organization to act in the best interests of another person or organization. A fiduciary is a person or...

Board of Directors

In the corporate governance structure, the term "Board of Directors" may refer to a group of individuals elected by shareholders to oversee and guide the management and direction of a...

Side A “Difference-in-Conditions” (DIC)

In the intricate landscape of insurance, particularly when dealing with Directors and Officers (D&O) policies, the term Side A Difference-in-Conditions (DIC) emerges as a crucial concept. At its core, Side...

Rescindable

Within the realm of Directors and Officers (D&O) insurance, the term "rescindable" plays a pivotal role in determining the stability and reliability of coverage for policyholders. When a D&O policy...

Non-resindable

In the intricate domain of Directors and Officers (D&O) insurance, the attribute "non-rescindable" emerges as a hallmark of steadfast protection. A non-rescindable policy stands as an unyielding commitment by the...

Reputational Harm

Reputational Harm may refer to any type of damage that negatively affects the reputation or image of an individual, business, or organization. It is a form of intangible damage caused...

Occurrence Trigger

Occurrence Trigger may refer to the type of insurance policy trigger used to determine when coverage begins and ends. It is used in Directors and Officers (D&O) insurance, which provides...

Notice of Circumstance

A Notice of Circumstance is a document that is used in the field of Directors and Officers (D&O) insurance. The document is used to alert the insurance company of potential...

Side A Excess

Additional Side A Coverage is a term that may refer to a form of Directors and Officers (D&O) insurance that is designed to provide additional coverage beyond the traditional D&O...

Malfeasance

Malfeasance is a legal term that may refer to an act of misconduct, or improper action, by a public official or employee. It is defined as an intentional illegal act...

Extended Reporting Period

Extended Reporting Period is a term that may refer to an option available to policyholders when their policy is up for renewal or has expired. It is a coverage option...

Change in Control

Change in Control (also known as CIC) is a term that may refer to a situation when a company’s ownership structure changes significantly. This can happen as the result of...

Settlement Costs

Settlement Costs may refer to the expenses incurred by the insurer in closing a claim or dispute. The term 'settlement costs' can refer to any costs associated with the conclusion...

Rescission

The term "Indemnification" may refer to the legal protection of a person or organization against claims or losses that arise as a result of the actions of another. In the...

Punitive Damages

Punitive Damages may refer to a financial award given to a plaintiff in a civil case as a form of punishment to the defendant. Punitive damages are awarded in addition...

Insurance Score

The "insurance score" is a pivotal metric within the domain of Directors and Officers (D&O) insurance. It is essentially a rating that evaluates the potential risk profile of an individual...

Outside Directorship Liability (ODL)

Outside Directorship Liability (ODL) may refer to a type of insurance policy designed to protect directors and officers of a company from liability arising from their activities as a director....

Warranty

Warranty is a legal term that may refer to a guarantee or assurance provided by a manufacturer or seller regarding the condition of a product or its fitness for a...

Qui Tam

Qui Tam is a Latin phrase meaning “who brings a case on behalf of the king as well as himself”. It is a legal term that may refer to a...

Claim history

Claim history is a term that may refer to a record of claims made against an insurance policy. It includes the details of any claims made, such as the date,...

Severability

Severability is a legal concept that may refer to the ability to separate a single contract or statute into multiple parts. It is often used when one or more of...

Securities Class Action (SCA)

Securities Class Action (SCA) is a legal action that may refer to a lawsuit brought by investors on behalf of themselves and other members of a class of people who...

Indemnification

Indemnification is a term that may refer to the protection of a person or entity from legal liability. This protection may come in the form of money, goods, or services....

Exclusion Clauses

Exclusion Clauses are terms found in insurance policies which limit or restrict coverage for certain types of claims or losses. They may refer to specific situations or events which are...

Securities Claims

Securities claims may refer to a set of legal rights which are held by the owner of a security. These rights may include the right to receive principal and interest...

Final Adjudication

Final Adjudication is a legal term which may refer to the end result of a court case or dispute. In this context, it is a determination made by a judge...

“Hammer” Clause (or Settlement Cap Clause)

Hammer Clause (or Settlement Cap Clause) may refer to a provision in a Directors and Officers (D&O) insurance policy that seeks to limit the amount of money payable by the...

Legal Fees

Legal Fees may refer to the costs associated with legal services. These costs may include attorney fees, court costs, and other associated costs. Legal fees are the charges for legal...

Covenant Not to Sue

Covenant Not to Sue is a legal document that is signed by two or more parties, where one party agrees not to take legal action against the other party in...

Insured vs. Insured Exclusion

Insured vs. Insured Exclusion may refer to a specific type of exclusion in a Directors and Officers Liability Insurance policy. This exclusion is used to define the circumstances in which...

Shareholder Derivative Suit

Shareholder Derivative Suit may refer to a legal claim brought by a shareholder on behalf of a corporation against a third party. This type of lawsuit is typically initiated when...

D&O Tail Insurance

D&O Tail Insurance, also known as Extended Reporting Period, is a type of insurance coverage that may refer to a form of Directors and Officers (D&O) liability protection. It provides...

Settlement Clause

Settlement Clause is a term that may refer to a clause in a Directors and Officers (D&O) insurance policy that outlines when and under what conditions the insurer is allowed...

Defense Costs

Defense Costs, as it applies to Directors and Officers (D&O) insurance, may refer to the expenses incurred by an insured (e.g. a director or officer of a company) in order...

Aggregate Limit

The term Aggregate Limit may refer to the maximum amount of financial protection that a Directors and Officers (D&O) insurance policy will provide for all claims made against a policyholder...

Allocation

Allocation is a term that may refer to the process of distributing resources, goods, or services between individuals or entities. In the realm of Directors and Officers (D&O) insurance, allocation...

Fraud

Fraud is a term that may refer to a variety of criminal activities, generally involving the intentional deception of another person or entity for monetary or other gain. Fraud can...

Insurability of Fines and Penalties

The term Insurability of Fines and Penalties may refer to the ability of an insurance company to provide coverage for fines and penalties that a company may face due to...

Worldwide Coverage

Worldwide Coverage is a term commonly used in the realm of Directors and Officers (D&O) insurance. It may refer to the scope of the insurance policy, which provides coverage for...

Side C Coverage

Side C Coverage, also known as Entity Coverage, is a form of Directors and Officers (D&O) liability insurance. It is a type of insurance coverage that provides protection to the...

Prior Bad Acts

"Prior bad acts," within the realm of Directors and Officers (D&O) insurance, pertains to wrongful actions or omissions that occurred before the inception of a D&O insurance policy. The definition...

Exclusion

Exclusion may refer to the act of omitting or denying something, or the state of being excluded. In the context of D&O insurance, an exclusion is a type of clause...

Side B Coverage

Side B Coverage may refer to a type of insurance policy designed to protect the personal assets of directors and officers (D&O) of a company. It is a supplemental policy...

Prior Acts

Prior Acts may refer to a concept in insurance law, specifically a type of insurance called Directors and Officers (D&O) liability insurance. D&O insurance protects directors and officers of organizations...

Negligence

Negligence is a term that may refer to an act or omission in which a person has failed to exercise the proper degree of care expected of a reasonable person...

Whistleblower

A "whistleblower" is a term that resonates profoundly within the realm of Directors and Officers (D&O) terminology. By definition, a "whistleblower" is an individual, often an insider within an organization,...

Standstill Agreement

A "standstill agreement" holds particular significance in the lexicon of Directors and Officers (D&O) terminology. By definition, a "standstill agreement" is a formal arrangement between two parties, usually a company...

Drop Down Coverage

Drop Down Coverage is a type of insurance policy that provides protection for directors and officers of an organization in the event of a negligent act or omission. The coverage...

Side A Coverage

Side A Coverage is a type of insurance that may refer to the protection of individual directors and officers from personal financial loss due to claims brought against them. It...

Per Claim Limit

Per Claim Limit is a key term used in Directors and Officers (D&O) insurance policies. It may refer to the maximum amount the insurer will pay for any one claim...

Prior Knowledge

Prior Knowledge may refer to the knowledge an individual or entity had of a potential event or loss before the event occurred. In the context of Directors and Officers (D&O)...

Claims-Made Trigger

Claims-Made Trigger may refer to the legal concept of when a professional liability insurance policy is triggered by a claim. A Claims-Made Trigger is typically found in the insurance policy's...