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Directors and Officers Liability Insurance covers claims of wrongful acts in the leadership role, especially those arising from how the company is governed and reported. Securities acts are a classic area of exposure for directors and officers because investors rely on accurate disclosures and honest governance. When misstatements, omissions, or breaches of fiduciary duty related to securities are alleged, the D&O policy is designed to respond, since these claims arise from how decisions were made at the top and how information was communicated to shareholders and regulators.

Property damages and auto accidents fall outside this scope because they involve physical damage or vehicle liability from day-to-day operations, not allegations of mismanagement or misrepresentation by directors and officers. Patent infringements are IP disputes; while they can lead to claims against the company, they’re typically handled under IP or product-liability coverage rather than standard D&O policies.