01 / The meaning
What it means.
The term often appears in D&O or management liability arrangements. Its scope varies substantially: a listed-company policy may restrict entity cover to defined securities claims, while another form may address a different range of organisational wrongful acts. A company appearing on the schedule does not mean every liability it incurs is covered. Read the entity insuring clause and exclusions separately.
When an allegation names both the company and individuals, allocation provisions can determine how costs are divided. The same aggregate limit may support entity and individual claims, so a substantial company defence can reduce what remains for directors. Subsidiaries, newly acquired businesses and trusts may also have special rules. Match the actual legal entities conducting the work with the schedule and the policy’s definitions.
02 / Put it in context
A practical example.
Hypothetical example: a customer sues a company and two directors over alleged misleading representations. The insurer examines the insured defendants, entity clause, individual clauses and allocation rules before deciding which costs fall within the policy.
This example illustrates the term. It does not predict a claim outcome.
03 / Read the detail
What to check.
- Identify the specific claims included in the entity section.
- Check subsidiaries and newly acquired entities against definitions.
- Review shared limits, allocation and priority-of-payment provisions.
04 / Start a useful conversation
A question for your broker.
Does our organisation have entity cover for this allegation, and does it share directors’ limits?
05 / Connect the terms
Keep the meaning in context.
06 / Apply it to your business
Related insurance guides.
Further reading
Read the source guidance alongside the relevant policy wording.
General information only. This does not take into account your objectives, financial situation or needs. Before acting, consider whether the information is appropriate for you. Cover is subject to insurer acceptance and the policy terms, conditions, limits and exclusions. Read the Financial Services Guide and the relevant PDS (where applicable) and/or policy wording before deciding.
Let’s start with your business
A clearer conversation
about your insurance.
Tell us what you do, what has changed and what you need to understand.