D&O Nuts & Bolts in Journal of Texas Insurance Law

“Nuts & Bolts :: Directors & Officers Liability Policies” provides an overview of D&O policies, which provide the executives of a company with protection against liability for “wrongful acts” committed in their corporate capacities and the cost of defending such claims. The article provides a primer on D&O insurance, common policy provisions, and key considerations to guide policy evaluation. 

The Journal is published by the Insurance Law Section of the State Bar of Texas. 

“In extremely general terms, D&O policies typically cover ‘loss,’ arising from a ‘claim’ made during the policy period, alleging a ‘wrongful act’ against an ‘insured’ in their insured capacity, which is not subject to exclusions within the policy,” she writes. “Of course, each one of the quoted terms above is a defined term and the particular language of each definition will steer coverage. The bottom line: as with all policies, the key to D&O coverage is a careful reading of the policy provisions, applied to the specific circumstances of the case.”