Side C Coverage, also known as Entity Coverage, is a form of Directors and Officers (D&O) liability insurance. It is a type of insurance coverage that provides protection to the corporation itself in the event of a lawsuit. Side C coverage may refer to a company’s legal liability for the wrongful acts of its directors and officers. It provides indemnification for the corporation itself and covers the losses incurred by the company for which the directors and/or officers are responsible.
Side C Coverage in More Detail
Side C coverage is an important part of a D&O policy because it protects the company from the financial losses that may occur due to the wrongful acts of its directors and officers. It is designed to cover the company from claims resulting from a wide range of corporate activities, such as mismanagement, negligence, or breach of duty. It also covers the legal defense costs for the company in the event of a lawsuit.
Side C coverage is an essential part of any D&O policy and provides protection for the company in the event of a lawsuit. It is important to understand the scope of Side C coverage before purchasing a policy, as it can provide financial protection for the company in the event of a lawsuit.
