What Should Venture-Backed Startups Check in D&O Insurance?
Venture-backed startups should compare D&O terms with investor and board requirements, including entity coverage, limits, claims timing, and exclusions.
Outside directors and financing documents can change who needs protection. Confirm required terms before closing.
Review the financing documents and policy together: an investor’s required limit does not confirm that the company or its directors receive the requested protection. Side C may be limited by claim type, while Side A/B protect individual liability and indemnification. A shared aggregate can be depleted by EPLI or fiduciary claims, and insured-versus-insured terms may matter where investors also have board roles. Check board and subsidiary schedules, securities-claim scope, prior acts, notice, and acquisition provisions. After each round, board change, or reorganization, ask whether an endorsement or updated application is required and keep the investor evidence consistent with the issued policy.
