Deductible/Retention
Limit
Typically,
the insurance company agrees to pay for a covered loss above a deductible
or a retention. The policy warrants that both the insured’s participation
and the retention must be uninsured; the insured cannot arrange for “supplemental”
D&O liability coverage for the participation and retention even if
another insurance company is willing to sell it. Losses arising out of
the same act or interrelated acts of one or more of the directors or officers
are considered to be a single loss and only one retention is deducted from
the aggregate amount of such losses.