Also known as: codefendant meaning · co-defendant · codefendant vs plaintiff
A codefendant is a party sued in the same lawsuit as you, named alongside you by the plaintiff to answer the same or related claims.
A codefendant is any other party the plaintiff names in the same action, so that you are defending the suit side by side. For a startup, this often means the company and its founders or directors are all codefendants in one complaint, which is why D&O insurance responds for the individuals while the entity coverage responds for the company. It also comes up in vendor and subcontract disputes, where a prime and its subcontractor are sued together and each tries to shift liability to the other through indemnification and additional insured clauses.
A codefendant is a party named as a defendant in the same lawsuit as you, sued by the plaintiff to answer the same or related claims. In startup litigation the company and its founders or directors are often codefendants in a single complaint. Being a codefendant matters for insurance because different policies and coverage parts may respond for each party, and codefendants can end up disputing liability among themselves.
Typically your D&O policy responds for the individual directors and officers, while its entity coverage responds for the company itself, though the exact split depends on your policy and how the claim is allocated. If the codefendants have conflicting interests, they may need separate defense counsel. Notify your broker early so the right coverage parts are put on notice and defense costs are handled correctly.
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.