If the firm does reimburse directors and officers for negligent acts associated with their duties, insuring agreement B reimburses the firm for a like amount.Entity Securities Coverage and Employment PracticesLiability may also be added to the D&O policy. Coverage forms for D&O are not standardized and need to be carefully examined. One issue that often arises is the definition of an insured. For example, if a director, who owns stock in the firm, sits on a corporate board and there is a shareholder suit against the board, the director is both defendant and plaintiff. Similarly, if a homeowner is a director of the local homeowners’ association and there is a suit, is the director acting as a director or homeowner? The definition of insured in the D&O policy needs to make this clear.