{
  "id": "clause-side-a-b-c",
  "type": "clause",
  "languages": {
    "en": {
      "id": "clause-side-a-b-c",
      "lang": "en",
      "type": "clause",
      "title": "Side A/B/C Coverage Clause",
      "shortDefinition": "The Side A/B/C structure divides a D&O policy into three insuring agreements: direct personal protection for directors and officers without indemnification (Side A), reimbursement of indemnification payments made by the company (Side B), and standalone entity cover for claims against the company itself (Side C).",
      "synonyms": [
        "ABC Policy",
        "Side A",
        "Side B",
        "Side C"
      ],
      "linesOfBusiness": [
        "D&O insurance"
      ],
      "jurisdictions": [
        "Global"
      ],
      "tags": [
        "D&O",
        "London Market",
        "Coverage architecture"
      ],
      "relations": {
        "relatedTerms": [],
        "partOf": [],
        "appliesTo": [
          "cov-do"
        ],
        "regulatedBy": [],
        "relevantFor": [],
        "insurableVia": [],
        "mitigatedBy": [],
        "comprises": [],
        "alternativeTo": [],
        "complementedBy": []
      },
      "attribute": null,
      "profile": null,
      "coverageProfile": null,
      "clause": {
        "kind": "definition",
        "origin": "london-market",
        "favours": "neutral",
        "negotiability": "negotiable",
        "standardWordings": []
      },
      "legalBasis": [],
      "standards": [],
      "reviewStatus": "expert-reviewed",
      "reviewedBy": "Guido Hesse, Hesse Group Holding AG",
      "lastReviewed": "2026-09-04",
      "version": "0.1.0",
      "updated": "2026-09-03",
      "generated": {
        "by": "cursor-agent/claude-sonnet-5",
        "at": "2026-09-03T00:00:00.000Z"
      },
      "verified": [
        {
          "by": "human:ghesse",
          "at": "2026-09-04T00:00:00.000Z",
          "method": null
        }
      ],
      "staleAfter": null,
      "url": "https://hgh.ch/lexikon/en/knowledge/clause/side-a-b-c-coverage-clause/",
      "alternateUrl": "https://hgh.ch/lexikon/de/wissen/klausel/side-a-b-c-deckung/",
      "body": "## Purpose\n\nD&O insurance protects three distinct economic interests that a single insuring clause could not properly capture. Side A ensures individual directors and officers remain personally protected even where the company is legally prohibited from indemnifying them or — for example in insolvency — is financially unable to do so. Side B reimburses the company for amounts it has already paid to indemnify its directors and officers. Side C covers claims brought directly against the company itself, for listed companies typically limited to securities claims.\n\n## Effect and limits\n\nThe three insuring agreements usually share a single aggregate limit tower, which can create competition for the same capacity when claims are brought against both individuals and the entity simultaneously. For this reason many companies purchase a standalone \"Side A DIC\" (difference in conditions) layer, reserved exclusively for directors and officers, carrying no retention and responding only where the underlying ABC policy fails to pay or pays insufficiently — for instance on insolvency of the primary insurer or where coverage is disputed.\n\n## Negotiation and practice\n\nProgramme design should address whether a separate Side A DIC layer is warranted, particularly for directors of listed or financially exposed companies. It is also important to consider the interaction with the insured versus insured exclusion and with the allocation clause, since both directly affect how far Side A protection actually extends in a dispute."
    },
    "de": {
      "id": "clause-side-a-b-c",
      "lang": "de",
      "type": "clause",
      "title": "Side A/B/C Coverage Clause",
      "shortDefinition": "Die Side-A/B/C-Struktur gliedert eine D&O-Police in drei Deckungsteile: persönlicher Schutz der Organe ohne Freistellung (Side A), Rückerstattung von Freistellungszahlungen an das Unternehmen (Side B) und eigene Organisationsdeckung bei Klagen gegen das Unternehmen selbst (Side C).",
      "synonyms": [
        "ABC-Deckung",
        "Side A",
        "Side B",
        "Side C"
      ],
      "linesOfBusiness": [
        "D&O-Versicherung"
      ],
      "jurisdictions": [
        "Global"
      ],
      "tags": [
        "D&O",
        "London Market",
        "Deckungsarchitektur"
      ],
      "relations": {
        "relatedTerms": [],
        "partOf": [],
        "appliesTo": [
          "cov-do"
        ],
        "regulatedBy": [],
        "relevantFor": [],
        "insurableVia": [],
        "mitigatedBy": [],
        "comprises": [],
        "alternativeTo": [],
        "complementedBy": []
      },
      "attribute": null,
      "profile": null,
      "coverageProfile": null,
      "clause": {
        "kind": "definition",
        "origin": "london-market",
        "favours": "neutral",
        "negotiability": "negotiable",
        "standardWordings": []
      },
      "legalBasis": [],
      "standards": [],
      "reviewStatus": "expert-reviewed",
      "reviewedBy": "Guido Hesse, Hesse Group Holding AG",
      "lastReviewed": "2026-09-04",
      "version": "0.1.0",
      "updated": "2026-09-03",
      "generated": {
        "by": "cursor-agent/claude-sonnet-5",
        "at": "2026-09-03T00:00:00.000Z"
      },
      "verified": [
        {
          "by": "human:ghesse",
          "at": "2026-09-04T00:00:00.000Z",
          "method": null
        }
      ],
      "staleAfter": null,
      "url": "https://hgh.ch/lexikon/de/wissen/klausel/side-a-b-c-deckung/",
      "alternateUrl": "https://hgh.ch/lexikon/en/knowledge/clause/side-a-b-c-coverage-clause/",
      "body": "## Zweck\n\nD&O-Versicherung schützt drei unterschiedliche wirtschaftliche Interessen, die eine einzige Deckungsklausel nicht sauber abbilden könnte. Side A stellt sicher, dass Organmitglieder auch dann persönlich geschützt sind, wenn das Unternehmen sie rechtlich nicht freistellen darf oder – etwa im Insolvenzfall – wirtschaftlich nicht freistellen kann. Side B erstattet dem Unternehmen Beträge, die es seinen Organen bereits erstattet hat. Side C schliesslich deckt Ansprüche, die direkt gegen die Gesellschaft selbst gerichtet sind, insbesondere bei börsenkotierten Gesellschaften typischerweise beschränkt auf Kapitalmarktklagen.\n\n## Wirkung und Grenzen\n\nDie drei Deckungsteile teilen sich in der Regel einen gemeinsamen Gesamtlimit-Turm, was bei parallelen Ansprüchen gegen Organe und Gesellschaft zu Konkurrenz um dieselbe Kapazität führen kann. Deshalb kaufen viele Unternehmen zusätzlich eigenständige «Side A DIC» (Difference in Conditions)-Deckung, die exklusiv den Organen zusteht, ohne Selbstbehalt auskommt und erst greift, wenn die zugrundeliegende ABC-Police nicht oder nicht ausreichend leistet – etwa bei Insolvenz des Versicherers der Grundpolice oder bei streitiger Deckungsablehnung.\n\n## Verhandlung und Praxis\n\nBei der Programmgestaltung ist zu klären, ob eine separate Side-A-DIC-Schicht sinnvoll ist, insbesondere für Organe börsenkotierter oder finanziell exponierter Unternehmen. Wichtig ist zudem die Abgrenzung zur Insured-vs-Insured-Ausschlussklausel und zur Allocation-Klausel, da beide unmittelbar beeinflussen, wie weit Side-A-Schutz im Streitfall tatsächlich greift."
    }
  }
}