Does a board member still have D&O insurance coverage after stepping off of a company’s board?
Yes. D&O insurance policies provide coverage not just for the current directors and officers of a company, but also for the former directors and officers. There are, however, two important caveats. First, coverage for former directors and officers is only for claims that concern events occurring before the director or officer left the company and that relate to the individual’s capacity as a director or officer of the company. Second, coverage for former directors and officers continues only to the extent that the company continues to purchase D&O insurance in the future. In other words, there must still be a current D&O policy in place at the time the claim is asserted and under which the claim can be submitted to an insurer. Insurers refer to this as “claims made” coverage. If the company does not continue its D&O coverage in this manner, then the former directors and officers will not have coverage available to them. They typically cannot reach back to the policy that had been in ef
