Risk context
Directors can be pursued personally, and defence costs can accrue long before liability is established. This class exists mainly to fund that period.
Cover sits alongside company indemnities rather than replacing them, and the interaction between the two is worth reading carefully.
Concepts that appear in this class
- Side A / B / C structure
- Policies commonly separate cover for individuals, company reimbursement and the entity itself.
- Defence costs
- How costs are advanced, and whether they erode the limit, differs between wordings.
- Employment practices
- Claims brought by employees relating to the employment relationship are typically a separate section.
- Change of control
- A sale or restructure normally affects the policy and should be discussed before completion.
These are general descriptions of terms commonly used in this class of insurance. They do not describe your policy. Whether any of them apply, and on what terms, is determined by the wording, schedule and endorsements issued to you.
What moves the terms
- 01Company structure, ownership and any overseas entities
- 02Balance sheet size and external funding
- 03Employee numbers and turnover of staff
- 04Regulatory environment the business operates in