Affords direct coverage of the insured organization under a directors and
officers (D&O) liability policy. Typically, corporate D&O forms only reimburse
the insured organization when it is legally obligated to indemnify corporate
officers and directors for their acts on behalf of the organization. However,
if a lawsuit specifically names the insured
organization as a defendant, the standard D&O policy does not provide coverage.
Entity coverage, which until recent years was only provided under D&O policies
written for nonprofit organizations and healthcare institutions, is designed
to cover the organization directly in addition to its directors and officers.
A number of corporate D&O forms will now provide an entity coverage endorsement
for an additional premium. See also Allocation.
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D&O Typical Policies 3.03