Shareholders sue a corporation's board, alleging the directors approved an acquisition without adequate diligence. The coverage designed for this suit is:

a.directors and officers liability
b.employment practices liability coverage
c.fidelity coverage for employee dishonesty
d.commercial general liability, Coverage B

Explanation

Directors and officers liability responds to claims that the people managing a company breached their duties in that capacity — mismanagement, inadequate diligence, misleading disclosure — whether brought by shareholders, regulators, or others. Employment practices liability answers claims brought by employees over hiring, firing, and workplace conduct. Fidelity coverage insures the employer against theft by its own employees, and Coverage B handles a listed set of offences such as libel and wrongful eviction.

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