Does D&O Cover Regulatory Investigations?

A regulatory matter may qualify only after a specified event, such as formal charges, an investigative order, or a subpoena to an insured person. The Travelers specimen defines some formal administrative or regulatory proceedings as claims and separately describes subpoenas and derivative demands; other forms can use different triggers. Triple-I lists failure to comply with laws and regulatory claims as possible allegations, not guaranteed benefits. Check the claim definition, whether investigation expenses are insured and sublimited, which individuals must be named, notice deadlines, and any fines or penalties exclusion.

A policy may require a formal order, filed charges, named individual, or subpoena before an inquiry meets its definition of claim; informal requests may not qualify. A/B coverage may apply to an insured person, while company investigation expense or Side C coverage may be separately limited. Even if defense costs qualify, fines, sanctions, or restitution may be excluded or uninsurable. Compare the claim trigger, investigation-expense sublimit, notice deadline, consent requirements, and conduct or prior-proceeding exclusions. The Travelers specimen is only an example of formal triggers; use the wording and endorsements in the current quote.