Does D&O Cover Founders?

A founder may be covered when the policy defines them as an insured person for management acts.

A founder may be an insured as a director, officer, manager, or sometimes employee, but coverage ordinarily follows the capacity listed in the policy.

The same individual acting as a shareholder or outside consultant may not be protected in that separate role. Side A and B concern claims against insured people; Side C is the company’s separate grant. Check the founder’s legal title and entity against the definitions and schedules, plus prior-acts dates and insured-versus-insured terms. If a founder leaves or changes roles, ask whether past service remains covered under renewal or run-off wording.

Updated . Check your quote and policy wording to see how this answer applies to your coverage. See the editorial policy or contact Spot with a correction and supporting source.

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