Addressing the excess insurance clause in the sponsor's D&O policy

Author: Adnan Arian

Outside Directors’ Liability in Private Equity

As private equity sponsors appoint their own personnel as Outside Directors of portfolio companies, sponsors should be aware of the Directors and Officers (D&O) liability coverage available to the Outside Director. Only under specific circumstances will the sponsor's insurance apply to the Outside Director's activities on the board of the portfolio company.

Learn how the sponsor's D&O insurance limits may deploy for a claim against an insolvent portfolio company and related questions that may arise.

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