Does D&O Cover Former Directors?

A former director can remain within the definition of an insured person for past conduct in some forms; the Travelers specimen includes people who “was, is or becomes” a covered director or officer. That dated example does not promise coverage under a new policy or for acts outside the insured capacity. Claims-made policies also require attention to when a claim is first made and reported, and prior notice or pending-proceeding exclusions can bar related matters. Check former-insured wording, continuity and retroactive dates, extended reporting options, and whether a transaction or policy cancellation changes protection.

A former director’s protection generally concerns acts while serving in an insured capacity; it does not automatically cover new work after leaving the board. Side A or B may apply to covered individual claims, while any Side C payment is for the organization under its grant. Claims-made continuity, prior-notice exclusions, and run-off or extended reporting terms are important after resignation, sale, or nonrenewal. Check whether the person remains an insured for past service, the policy’s retroactive date, who must report a claim, and whether a transaction changed the policy period. The actual renewal and endorsements control.