Hunton Insurance Recovery Blog

Directors and officers liability insurance is first and foremost protection against personal exposure of boards and management who are targeted in claims challenging their decisions in running the company. That’s why it is surprising how often dedicated “Side A” coverage—insurance coverage, subject to no self-insured retention, available exclusively for the benefit of directors and officers who are not indemnified by the company—is overlooked in placing and renewing D&O insurance programs. One recent Texas bankruptcy ruling, In re First Brands Group, LLC, No. 25-90399 (CML) (Bankr. S.D. Tex. Jan. 7, 2026), demonstrates just how powerful Side A protection can be. There, against strong objections from the creditors’ committee, the bankruptcy court granted motions by numerous former executives seeking relief from the automatic stay to recover D&O insurance proceeds, unlocking millions in Side A coverage to defend against private and governmental claims asserted in connection with the bankruptcy.

Officers and directors must constantly navigate new and emerging risks, and that trend will continue in 2025. Ever-growing use (and misuse) of artificial intelligence, increased geopolitical risk, boardroom fallout following cybersecurity incidents, a new administration in the White House, and many other factors point to another eventful year for D&O exposures. Ensuring adequate protection for company leadership is more important than ever to attract and retain top talent.