D&O Tail Insurance
What is 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 additional protection for a company’s directors and officers after the expiration of the D&O policy term. The “tail” insurance coverage can extend the period of coverage for claims that arise after the D&O policy has expired.
D&O Tail Insurance in More Detail
D&O Tail Insurance is typically written for a set period of time – typically one to five years – depending on the company’s insurance needs. This type of insurance coverage is important for companies that are going through important changes such as a merger or an acquisition, as it provides an additional layer of protection in the event a claim is made against a director or officer after the policy has expired.
D&O Tail Insurance is designed to cover the legal costs associated with defending directors and officers in the event of a claim being made against them. This type of insurance may also provide coverage for damages or settlements that need to be paid out in the event of a successful claim.
In summary, D&O Tail Insurance is a type of insurance that provides additional protection for the directors and officers of a company after the expiration of the D&O policy term. It covers the legal costs associated with defending directors and officers, as well as damages or settlements that need to be paid out in the event of a successful claim.
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