---
title: "Should a Startup Buy D&O Insurance Before Fundraising?"
description: "Review D&O before fundraising because investors may require it and underwriting can take time."
canonical: "https://spot.insure/insurance-faq/directors-officers/do-before-fundraising"
page-type: "faq-question"
updated-at: "2026-09-25"
---

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# Should a Startup Buy D&O Insurance Before Fundraising?

Review D&O before fundraising because investors may require it and underwriting can take time.

Insurers may ask about ownership, board structure, finances, disputes, and plans. Build that application time into the financing schedule so coverage terms can be reviewed before signing.

Before signing, obtain the investor’s exact insurance requirement and compare it with the policy declarations, not just the broker’s proposal. Ask whether the required limit means total D&O or a specific Side A, B, or C grant, and whether entity securities coverage or particular board members must be included. The claims-made effective date and retroactive date should fit the transaction timeline; a prior-notice clause can also affect a known dispute. Verify binding with the insurer or authorized broker and retain the issued forms. A financing covenant cannot itself expand the policy beyond its wording.

## Related Questions

- [When Should a Startup Buy D&O Insurance?](https://spot.insure/insurance-faq/directors-officers/when-startup-buy-do)
- [Should a Startup Buy D&O Insurance After Fundraising?](https://spot.insure/insurance-faq/directors-officers/do-after-fundraising)
- [Does a Startup Need D&O Insurance?](https://spot.insure/insurance-faq/directors-officers/startup-do)

## Related Coverage

- [Directors and officers](https://spot.insure/coverage/directors-officers)

## Sources

1. [Directors and Officers insurance](https://www.iii.org/article/directors-and-officers-insurance). Insurance Information Institute (Triple-I); What D&O covers; What’s excluded?; The added value of protecting company leaders. Accessed 2026-09-25.

More answers: [Directors and Officers (D&O) Insurance FAQ](https://spot.insure/insurance-faq/directors-officers).

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