Does D&O Cover Regulatory Investigations?
Some D&O forms treat formal regulatory investigations as claims, while informal inquiries may not trigger coverage.
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.
