If found guilty of a criminal act, must the D&O refund the legal defence costs?

  • The policy draws a distinction between mistakes and the ‘willful violation’ of laws.
  • If the Insured Person is guilty of breaking the law, but it can be shown to be a mistake, then if found guilty, they would not need to repay the legal costs.
  • However, if the Insured Person was found guilty of deliberately breaking a law then they would need to repay the legal defence costs.
Directors and Officers Liability