Directors & Officers (D&O) Premium Written
Underwriting a D&O policy for a publicly listed company's board members.
| Account Name | Type | Debit ($) | Credit ($) |
|---|---|---|---|
| Premium Receivable — D&O | Asset (+) | 25,000.00 | - |
| Written Premium — D&O | Revenue (+) | - | 25,000.00 |
💡 Accountant's Note
D&O insures directors and officers against personal liability for corporate decisions. GCC demand has grown significantly following regulatory increases in directors' accountability.
Practitioner & Systems Framework
💻 ERP Architecture
D&O policies are written on a claims-made basis. The policy admin system records all three coverage sides: Side A (personal asset protection for directors), Side B (company reimbursement for indemnifying directors), and Side C (entity coverage for securities claims, for listed companies). The premium is split between the sides for accounting purposes. Large D&O programs for listed companies often involve co-insurance or layered coverage, requiring coordination with lead and following insurers.
⚠️ Audit Flags
Auditors confirm that the D&O policy covers the current board composition (new directors added during the year may need to be endorsed). Verify the claims-made trigger and retroactive date. D&O claims are often high-profile and high-value — auditors review the largest open D&O reserves carefully. For listed company D&O, confirm that securities coverage (Side C) limits are appropriate given the company's market capitalisation. Assess whether the D&O coverage interacts with any regulatory investigations or enforcement actions involving the company.
📄 Required Documentation
Completed D&O proposal form with board composition, company financials, and litigation history; signed policy schedule with Side A/B/C split; premium computation; retroactive date confirmation; co-insurance or layering documentation if applicable; and a board resolution confirming the purchase of D&O coverage.
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Expert Analysis by Qusai Ahmad
General Accountant Supervisor & IFRS Specialist
Specialized in SAP GUI automation and Middle Eastern tax compliance. Building digital tools for the next generation of finance leaders.