How Broad Is Your Side A DIC D&O
A typical public company D&O insurance structure generally includes a combination of full D&O insurance along with a Side A DIC (difference in condition) cap. In contrast to the underlying public D&O policy which provides coverage for the company’s balance sheet, Side A DIC D&O policies provide broader coverage solely for non-indemnifiable claims against insured persons. One of their main allures is the ability to fill coverage gaps of the underlying policies. But not all Side A DIC policies are created equal. Corporate officers (and their brokers) need to perform the same level of due diligence when reviewing and negotiating [...]