Also known as: Side B · Corporate Reimbursement Coverage · Company Reimbursement
D&O coverage that reimburses the company when it indemnifies its directors and officers for covered claims.
Side B is the part of a D&O policy that reimburses the company for money it spends indemnifying its directors and officers. When a director or officer is sued and the company pays their legal defense and settlement costs (as most companies are required or permitted to do under their bylaws), Side B repays the company for those costs. This is the most commonly triggered insuring agreement in D&O policies because companies typically do indemnify their leaders when they can.
Side B coverage is the part of a Directors & Officers policy that reimburses your company when it indemnifies directors and officers for covered claims. When a director is sued and your company pays their legal defense and settlement costs, Side B repays the company. This is the most frequently triggered part of D&O policies for startups and private companies.
Side B applies when your company indemnifies a director or officer for a covered claim. If a D&O is sued personally and your company pays their legal fees and settlements per your bylaws or indemnification agreement, Side B reimburses the company for those costs. It's triggered more often than Side A because companies typically indemnify their leadership team.
Side A pays directors and officers directly when the company cannot or will not indemnify them (such as in bankruptcy). Side B reimburses the company when it does indemnify them. Most claims are paid through Side B because healthy companies indemnify their leadership. Side A acts as a safety net when indemnification isn't available.
Definitions are educational and may be modified by your specific policy language, endorsements, and state rules. For regulatory guidance, refer to the California Department of Insurance or the NAIC.
Last updated: July 2026.