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 to the company’s primary D&O policy, commonly referred to as Side A Coverage.
Side B Coverage in More Detail
Side B Coverage provides coverage for legal expenses of D&O when the company has indemnified them but cannot or will not pay. Without Side B Coverage, D&O may be personally liable for legal expenses and damages resulting from claims against them in their capacity as corporate directors or officers.
Side B Coverage also provides protection if the company’s primary D&O policy does not cover the losses incurred due to the directors’ or officers’ wrongful acts or omissions. It provides coverage for the D&O if the company is unable to indemnify them.
D&O insurance policies may also include Side C Coverage. Side C Coverage is designed to protect the company from the wrongful acts or omissions of its directors and officers.
In summary, Side B Coverage is a supplemental policy designed to protect the personal assets of directors and officers of a company if the company is unable to indemnify them. It provides coverage for legal expenses and damages resulting from claims against D&O in their capacity as corporate directors or officers. Side B Coverage can be combined with Side C Coverage to provide an additional layer of protection for the company.
