Does D&O Cover Criminal Acts?

Some policy forms include formal criminal proceedings in the claim definition and defer conduct exclusions until a final determination. Compare defense-cost wording and the point when repayment may be required.

A criminal charge may meet the policy’s definition of a claim, yet a conduct exclusion can later bar indemnity for intentional or dishonest acts. Side A or B may initially be relevant to an insured person’s defense; Side C depends on the company grant and the nature of the claim. Advancement, repayment, and final-adjudication language determine how defense costs are handled if wrongdoing is established. Check whether a formal charge is required, which insured must be implicated, whether one person’s conduct affects others, and if fines or restitution are excluded. Do not treat defense-cost funding as coverage of a criminal penalty.