Side C Coverage Clause Samples

Side C Coverage is a provision in directors and officers (D&O) liability insurance policies that extends coverage to the company itself for securities claims made against it. This coverage typically applies when the company, rather than its individual directors or officers, is named as a defendant in a lawsuit alleging violations of securities laws, such as shareholder class actions. The core function of Side C Coverage is to protect the company from financial losses arising from securities-related litigation, thereby safeguarding its assets and ensuring that funds are available to address such claims.