Side A vs Side B D&O: What’s the Difference?

Triple-I describes Side A as protection for directors and officers when the organization cannot indemnify them, and Side B as reimbursement to the organization when it does. These are different payment paths, not necessarily separate policies or equal limits. Policy wording may include retentions, priority-of-payments provisions, or separate limits that change how protection works when a company is distressed. Check whether both grants appear in the quote, which insureds and entities they apply to, how exhaustion affects each, and whether defense costs reduce the same limit.

Both grants relate to insured individuals, but only Side B reimburses the company after it indemnifies them. Side A can matter when law, governing documents, or financial distress prevents indemnification; its own conditions still apply. A retention or priority-of-payments clause may affect access to the limit, and defense expenses may erode what remains for settlement. Side C is a separate company grant and may compete for an aggregate. Compare each limit, retention, exhaustion trigger, indemnification definition, and payment priority in the quote. Confirm whether the insurer pays individuals directly under A or reimburses the organization under B.