Why don’t I just buy Directors & Officers liability without Errors & Omissions?
Basically, because Directors & Officers liability (D&O) does not offer adequate protection. Also, there is a big gray area between these two coverages with respect to which type of policy would cover certain claims. There is also a concept called “allocation”, which makes the case for comprehensive coverage. As a rule, insurance companies will not sell D&O to private equity funds without including E&O and since the incremental cost to include E&O is not that great, both should be obtained.
Related Questions
- Does a Directors and Officers (D&O), or a Professional Errors and Omissions (E&O), insurance policy address these potential cyber-crime liabilities?
- Who is covered by the directors and officers liability? Are Board of Governors members covered?
- Why don’t I just buy Directors & Officers liability without Errors & Omissions?
