Nvidia’s executive liability insurance reportedly covers personal assets, leaving company legal costs uncoveredMachine translation

FT: Nvidia’s directors’ and officers’ (D&O) insurance reportedly covers its leaders’ personal assets up to $900M, but not the company’s own legal costs. A proposed class action accuses Nvidia and Huang of misleading investors about the relationship, after a 4.3% share slide erased about $192B. Through broker Aon, Nvidia bought only Side A cover, up to $900M, which protects directors’ and officers’ personal assets. It skipped Side B, which repays a company for covering executives’ legal bills, and Side C, which covers securities claims against the company itself. Lawyers and brokers call that setup rare, and a 2018 WTW survey found more than 80% of public companies bought all 3 sides. Any defense costs or settlement Nvidia owes in the class action would therefore hit its own balance sheet.