What does Advancement of Defense Costs Provision mean? Read on to discover the definition & meaning of the term Advancement of Defense Costs Provision - to help you better understand the language used in insurance policies.
Advancement of Defense Costs Provision
A provision in directors and officers (D&O) liability policies obligating the insurer to pay defense and indemnity costs as incurred. Such provisions eliminate the need for insured directors and officers or the corporate organization to pay such costs prior to receiving reimbursement from the insurer. This is an important aspect of D&O coverage because both defense and indemnity expenses associated with claims against directors and officers are considerable.
We hope the you have a better understanding of the meaning of Advancement of Defense Costs Provision.