About Directors & Officers Coverage
Directors & Officers (D&O) policies first emerged from Lloyd’s of London in the 1930s to keep board members from losing their homes when fiduciary duties expanded and shareholder suits accelerated.1
Federal securities reforms and the liability crises of the late 1970s pushed insurers to formalize Side A, B, and C agreements so non-indemnifiable directors, reimbursing entities, and securities defendants could each trigger the same tower, a structure we still rely on for Rockland County nonprofits, startups, and family enterprises.2
Modern filings now incorporate SEC cybersecurity disclosure mandates adopted in 2023 plus the elevated securities-class-action tempo Cornerstone Research tracked through mid-2024, so underwriters want to see board-level incident plans, ESG narratives, and derivative demand logs before releasing quotes.3,4


