Side C cover also known as the Cover for Securities Claims against the company.

The main aim of the D&O policy is to cover senior natural persons who manage and set a company's strategy when they face claims arising from the performance of their functions or duties. In other words, the D&O policy covers management mistakes of a company's directors and officers.

➡ But can a D&O policy cover claims against the company itself?

The answer is yes, but only for certain companies and for a specific type of claim.

Companies in this bracket are those with securities (stocks or bonds) listed on a stock exchange and therefore are subject to securities legislation.

In those cases, the D&O policy will not only cover the directors and officers, but also the company itself. This “extension” of cover is known as Side C or Cover for Securities Claims against the entity.

➡ But why should an insurance policy that is aimed at covering individuals also cover the company? What’s the point?

The reason is mainly due to the nature of securities claims. In this type of claim, both the D&Os and the company will be named as co-defendants in the corresponding lawsuit, and they will be sued for the exact same thing.

Particularly in the USA, the costs of defending securities claims are very high, and because they involve both the D&O and the company, insurance policies usually cover both to avoid problems with allocating those costs between the company (not covered) and D&Os (covered).

Coverage Matters
https://www.dotraininghub.com/d-o-insurance-coverage-fundamentals