Outside Positions or Outside Directorship or ODL Coverage

An extension of coverage available from most D&ampO insurers for claims against directors and officers in their capacity as a director, officer or employee of another organization if the director or officer is serving in that outside position at the request of the insured company. Depending upon the specific provision purchased, this extension of coverage may apply to any outside position held by any insured director or officer, to only outside positions in non-profit entities, or to only outside positions in specifically scheduled outside entities. Outside position coverage typically applies only to the extent the director’s or officer’s loss is in excess of any insurance and indemnification available from the outside entity (i.e., double excess). Depending upon the ODL provision, the coverage may also be in excess of any indemnification available from the insured company (i.e., triple excess).

Leave a Reply

Your email address will not be published. Required fields are marked *