Directors and officers insurance: when investors start asking
Investors put money into people as well as products. When a board is making decisions about trials, regulatory filings, and spending, investors want to know that directors and officers are protected if those decisions are challenged.
Why investors bring it up
That's why D&O coverage often comes up during due diligence, and sometimes becomes a condition of closing.
What D&O covers
Directors and officers insurance can respond to claims made against individual directors and officers, and in some policies against the company, for alleged wrongful acts in their roles. Common examples include shareholder claims, regulatory investigations, and employment disputes. The terms vary a great deal from one policy to another.
What to prepare
- Your current board and officers, and any planned changes
- Your funding history and the terms of the round you're raising
- Any pending or past claims, disputes, or regulatory inquiries
- Your corporate governance documents and any policies you have in place
A timing point
Some carriers look at a company differently before and after a funding round. Starting the conversation early gives you time to compare options, understand exclusions, and avoid last-minute surprises.
Ready to talk it through?
Send your details through the risk review form, or call Elia George at (905) 361-9292.
Coverage descriptions here are general information only and are not a binder, quote or guarantee of coverage. Policy terms, conditions, limits and exclusions govern. Availability is subject to insurer underwriting. Insure The Lab is a marketing initiative operated by Elia George, who is contracted with St. Andrews Insurance Brokers. Insurance products are offered through St. Andrews Insurance Brokers. Elia George is compensated by commission. See the St. Andrews commission disclosure.