D&O or Key Person? What is the difference?
D&O concerns covered claims for management acts or omissions. Key Person life insurance concerns the covered death of a key individual. A business may need to consider both.
How we plan around your needs
We identify people and responsibilities.
The board, executives and corporate structure: we check who falls within the definition of an insured person.
We consider potential claims.
The business’s activities, relationships with third parties and history shape the underwriting assessment.
We review what triggers cover.
When a claim is made and notified, which time requirements apply and whether defence costs reduce the available limit.
Two different questions for management
- A claim against an executive for a management act
- D&O assessment
- Death of a person critical to operations
- Key Person assessment
An outline comparison of needs. This is not a legal opinion on liability or acceptance of a particular claim.
Before you choose
- Insured individuals, companies and geographical scope.
- Liability limit and treatment of defence costs.
- Known circumstances, previous claims and exclusions.
- Notification, time scope and continuity when management changes.
Your first questions
Does insurance cover every liability of a board member?
No. Cover is defined by the policy and its exclusions. It does not replace sound management or legal advice.
Is the company’s general liability insurance enough?
This needs to be checked. General liability and directors’ and officers’ liability address different types of exposure.
Prepared by: Iakovos Perchanidis · Updated
Source & availability
Market information source · AIG CorporateGuard D&OThis source explains the category of cover and does not imply a partnership with the provider. The insurer, availability and terms are confirmed in the individual proposal.