November 3, 2011

Insured Individuals

 Persons insured under a D&O policy normally are defined to include all individuals holding the position of “director” or “officer” of the corporation. In some policies, the individuals insured are listed in the definition of “insured.” In other policies, the individuals are listed in the definition of “directors and officers” or in a differently captioned definition. It also is common for persons or positions insured by a D&O policy to be modified, added, or excluded through endorsement. The policy form should recognize and clearly identify those persons and positions for which the insured organization seeks coverage. As the following examples illustrate, there have been significant differences over time regarding who is considered to be insured under a D&O policy and how such clauses are worded from policy to policy.