Is there cover if a shareholder sues the Insured? (Major shareholder exclusion)

  • Yes, the policy does cover claims made against directors and officers by the shareholders.
  • However there would not be cover if the claim is made by a shareholder who also had significant influence over the bad decision. In other words, it is not the policy’s intention to indemnify a major shareholder for bad decisions they participated in.
  • The policy’s major shareholder exclusion would exclude claims where shareholders owning 50% or more of the company hold the directors liable.
Subject: 
Directors and Officers Liability