Unlike some insurance policies such as commercial general liability, automobile liability, and many types of property insurance, D&O insurance policy forms are not standardized, and wording can vary dramatically among policies. Because of this, the coverage provided by a particular policy may not be understood thoroughly by those responsible for purchasing or recommending coverage The coverage format of D&O insurance is sometimes circuitous, and many people experience difficulty in interpreting the grant of coverage, exclusions, and other terms and conditions.

While claims-made policy forms have been in use for many years, a review of the claims-made concept as it pertains to D&O insurance is provided in this section. Also contained in this section are discussions on D&O insuring agreements, duty-to-defend conditions, policy limits, retentions, and coinsurance provisions, all of which contain elements unique to D&O insurance.