...a Frenkel & Co., Inc. Company

Frequently Asked Questions

Question: Does an E&O / D&O policy cover defense costs?

Answer: Yes, subject to the retention (deductible), an E&O / D&O policy will cover the cost of defense for a covered claim.  Depending on the carrier and policy form, the policy may also cover the cost of legal representation in the event of an investigation by a regulator.

Note that the policy limit includes all defense costs, charges and expenses. So if you have a policy with a $1,000,000 limit and it costs $300,000 to defend a claim, then only $700,000 will be available to pay any judgment or settlement.

< Previous Page

Copyright © 2009 Frenkel & Co., Inc.

Hedge Fund Insurance
a division of Frenkel & Co., Inc.
350 Hudson Street, 4th Floor, New York, NY 10014
Phone: 212-488-0270  Fax: 212-488-0432