What Doesn’t D&O Insurance Cover?

Triple-I lists fraud, personal profit, prior or pending litigation, late notice, bodily injury/property damage, insured-versus-insured claims, and ERISA among exclusions that commonly appear. These are not universal clauses: policy language may narrow or broaden an exclusion, add an exception, or treat defense costs differently. For example, the Travelers private-company specimen has detailed conduct and claim exclusions, but it is a 2009 form and is not a substitute for a current quote. Compare every exclusion and exception in the specimen policy and endorsements, including prior acts, insured-versus-insured, insolvency, and employment wording.

Exclusions are not interchangeable: an insured-versus-insured clause may have exceptions for derivative demands, a prior-acts restriction can bar older conduct, and a conduct exclusion may depend on a final adjudication. A Side C grant also may be limited to securities claims rather than every claim against the company. Compare the wording and exceptions, not only an exclusion heading. Ask how defense costs are handled while an allegation remains unresolved, and check endorsements that modify the base form.