Does D&O Cover Securities Claims?

Public-company forms often distinguish claims against directors and officers from claims against the organization itself. The Chubb specimen linked from Spot’s coverage record includes entity securities liability, while Triple-I describes Side C as entity coverage for claims against the company in a securities lawsuit. Do not assume a private-company policy has the same trigger or scope. Read the securities-claim definition, insured-person grant, entity grant, exclusions, and any separate sublimit. Confirm whether shareholder derivative demands, private placements, and particular securities or jurisdictions are included in the quote.

The important divide is the policy’s definition of a securities claim and whether the company itself has an entity grant. Side A and B address individual liability and corporate reimbursement; Side C may protect the organization, sometimes only for securities claims. A derivative demand may have separate investigation-expense treatment rather than the same coverage as a lawsuit. Insured-versus-insured, prior litigation, and conduct provisions can further restrict a claim. Compare the definition, covered defendants, sublimits, retention, defense costs, and allocation terms. Do not assume a private-company policy has the same entity coverage as a public-company form.