meaning of advancement of defense costs provision

advancement of defense costs provision meaning in Insurance Dictionary

a supply in directors and officials (D&O) obligation guidelines obligating the insurer to cover protection and indemnity expenses as incurred. Such arrangements eradicate the importance of insured directors and officials or perhaps the business company to pay for these types of prices ahead of receiving reimbursement from the insurer. This really is an important part of D&O coverage because both security and indemnity costs connected with claims against administrators and officials are considerable.