What does Side A Only Coverage mean? Read on to discover the definition & meaning of the term Side A Only Coverage - to help you better understand the language used in insurance policies.
Side A Only Coverage
A directors and officers (D&O) liability policy that provides only "direct" coverage of the directors and officers but does not cover the corporation's legal obligation to indemnify the directors and officers (known as Side B or corporate reimbursement coverage). Side A-only forms are written either on an excess or umbrella basis over a primary D&O policy. When written on an excess basis, they provide additional limits if a claim exhausts the coverage available under the primary form. When written on an umbrella basis, Side A-only policies afford broader coverage than the underlying, primary D&O policy, as well as additional limits.
We hope the you have a better understanding of the meaning of Side A Only Coverage.