Although Directors and Officers insurance policies are written in a linear fashion, their interpretation is rarely as straightforward. This app addresses the natural, non-linear manner in which a D&O policy must be interpreted.
We start with the most fundamental aspect: the Insuring Agreement, specifically for Side A directors and officers. The app then provides links to the definitions in the Insuring Agreement, and from there links to the definitions within those definitions.
Probably the most common error when interpreting a D&O policy is failing to follow or consider all of the applicable definitions. Definitions should not be taken lightly or read into. Definitions are specific tests which must be satisfied before coverage can be provided.
It is important in understanding how D&O policies work that the path of the definitions be followed and acknowledged. For example, it matters whether the definition of Claim is being considered in the Insuring Agreement, the definition of Directors and Officers, or in the definition of Damages. Understanding the path taken in the interpretation of a D&O policy is integral to understanding D&O policies as a whole.
We hope that being able to jump immediately to the applicable definition in each clause will assist in understanding how D&O policies work.