Nelson Mullins partners Scott Sherman and Edgar Neely authored a recent article published in The D&O Diary examining key directors and officers (D&O) insurance provisions that corporate boards should consider when evaluating coverage.

In “Director Checklist for D&O Policies: 10 Key Terms and Provisions Boards Should Assess,” Sherman and Neely outline important considerations that can affect the scope and availability of coverage when litigation or regulatory scrutiny arises. The article highlights issues including policy limits and order of payments, advancement of defense costs, severability provisions, Side A coverage, regulatory and government investigations, prior acts and related claims, non-rescission clauses, and choice of law.

The authors emphasize that understanding these protections at the outset of the D&O policy selection process can help directors better assess potential coverage gaps and protections against personal exposure should a claim arise.

Read the full article here.