What does Entity Securities Coverage mean? Read on to discover the definition & meaning of the term Entity Securities Coverage - to help you better understand the language used in insurance policies.
Entity Securities Coverage
The section of a directors and officers (D&O) liability insurance policy covering the corporate entity when claims are made against the entity in conjunction with securities it has issued. Claims covered by this section of the policy usually result from a specific corporate action that causes a drop in the market price of the firm's securities. "Side C" coverage, as entity securities coverage is often referred to, is actually an extension of the regular coverage afforded by of D&O liability policies, for which additional premium is required.
We hope the you have a better understanding of the meaning of Entity Securities Coverage.