Also known as: Insured Persons · Individual Insured
The defined class of individuals a management-liability policy protects, typically the company's past, present, and future directors, officers, and often employees when acting in their capacity for the organization.
On a Directors and Officers (D&O) or broader management-liability policy, "Insured Person" is the defined term for the individuals the policy protects, as distinct from the company entity itself. It usually covers past, present, and future directors and officers, and modern forms often extend to employees, committee members, and general counsel when they act in their capacity for the organization. The exact wording controls who is protected, so a broad definition, one that adds employees and sometimes an insured person's spouse, domestic partner, or estate for certain claims, gives founders and their teams meaningfully wider coverage. This is narrower and more specific than the general "insured": it targets people in their individual capacity rather than the business, and it is central to Side A protection when the company cannot indemnify them.
An Insured Person is the defined class of individuals covered under a Directors and Officers or management-liability policy, typically the company's past, present, and future directors and officers, and often its employees, when they act in their capacity for the organization. It refers to people in their individual capacity, not the company entity, which is usually covered separately. The precise list lives in the policy's definitions, so it is worth confirming that everyone you expect to protect is actually included.
The named insured is the company (or lead entity) listed on the declarations page as the policyholder, with the broadest rights to make changes, cancel, and receive notices. An Insured Person is an individual the policy protects in their personal capacity, such as a director, officer, or employee, and generally does not control the policy. In short, the named insured is the entity that owns the contract, while insured persons are the people whose personal exposure a D&O policy is designed to cover.
Often, yes. Many current D&O and management-liability forms extend the Insured Person definition to employees when they are named alongside a director or officer, or for employment-related and other covered claims, and some also reach committee members, general counsel, and a person's spouse, domestic partner, or estate for specific claims. Coverage for employees varies by form, so read the definition closely and, if it is narrow, ask your broker whether it can be broadened.
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.