Does D&O Cover Criminal Acts?
A criminal proceeding may meet a policy’s claim definition, but proven intentional wrongdoing is commonly excluded from covered loss.
A policy can recognize a formal criminal proceeding as a claim without agreeing to pay every resulting loss. The Travelers private-company specimen includes criminal proceedings in its claim definition and separately has conduct exclusions for intentional dishonest or fraudulent acts. Those provisions operate together: notice and defense may be addressed before facts are finally established, while a conduct exclusion may later restrict indemnity. Check the trigger for criminal claims, advancement or reimbursement of defense costs, final-adjudication wording, and whether defense costs can be recovered from an insured. Do not assume that a criminal allegation or acquittal has a uniform insurance result.
A criminal charge may meet the policy’s definition of a claim, yet a conduct exclusion can later bar indemnity for intentional or dishonest acts. Side A or B may initially be relevant to an insured person’s defense; Side C depends on the company grant and the nature of the claim. Advancement, repayment, and final-adjudication language determine how defense costs are handled if wrongdoing is established. Check whether a formal charge is required, which insured must be implicated, whether one person’s conduct affects others, and if fines or restitution are excluded. Do not treat defense-cost funding as coverage of a criminal penalty.
Related Coverage
Sources
- Private Company Directors and Officers Liability Coverage. Travelers Casualty and Surety Company of America; I.A–C p.1; III.A–E pp.1–2; III.J–M pp.2–3; IV Exclusions pp.3–4; VI Defense and Settlement pp.6–7; form version PDO-3001 Ed. 01-09. Accessed 2026-09-25.
- Directors and Officers insurance. Insurance Information Institute (Triple-I); What D&O covers; What’s excluded?; The added value of protecting company leaders. Accessed 2026-09-25.
