Side A vs Side B D&O: What’s the Difference?
Side A protects individuals when the company cannot indemnify them; Side B reimburses the company for indemnity it pays.
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.
