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.
Coverage Guides Related to D&O Insurance
Sources for This Answer
- SR 19-12: Statement Regarding Insurance Policies for Directors and Officers. Board of Governors of the Federal Reserve System; Applicability; Policy Considerations for Indemnification Insurance Policies; form/document version July 23, 2019. Accessed 2026-09-25.
- Private Company Directors and Officers Liability Coverage. Travelers Casualty and Surety Company of America; I.A–C p.1; III.A–E pp.1–2; III.J–M pp.2–3; IV Exclusions pp.3–4; VI Defense and Settlement pp.6–7; form version PDO-3001 Ed. 01-09. Accessed 2026-09-25.
- Directors and Officers insurance. Insurance Information Institute (Triple-I); What D&O covers; What’s excluded?; The added value of protecting company leaders. Accessed 2026-09-25.