Does D&O Cover Securities Claims?
D&O can cover defined securities claims against leaders, and some policies add coverage for the company itself.
Public-company exposure can differ from private-company shareholder claims.
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.
