Derivative investigation coverage

{
  "id": "MLC-T-INS-001139",
  "term": "Derivative investigation coverage",
  "field": "Insurance and risk management",
  "definition": "Insurance coverage that responds to the costs incurred by an organization when investigating a derivative demand. A derivative demand is a formal request from shareholders for the company to pursue legal action against its own directors or officers for alleged wrongdoing. This coverage typically applies to the expenses of independent counsel or other professionals retained to assess the merits of the demand.",
  "subject": "Management Liability",
  "url": "https://mlchart.com/terminology/insurance/derivative-investigation-coverage/"
}