Does a Startup Need D&O Insurance?
A startup may need D&O when founders or directors face management claims; investors may also require coverage as a funding condition.
Exposure can change when the company raises capital, appoints outside directors, issues equity, or hires employees. Compare coverage with those roles.
Before deciding, identify what changes the startup is approaching: a new board member, financing, hiring, or acquisition can add people, entities, and claim scenarios. Side A and B address individuals and indemnification; Side C can protect the entity only for the claims defined in the selected form. Prior knowledge, insured-versus-insured, and conduct wording can narrow protection, and a new policy may not pick up a previously reported dispute. Ask the broker to map investor requirements to the declarations and endorsements, and confirm what must be disclosed when applying.
