Who Needs D&O Insurance?
Organizations with directors or officers making consequential decisions may consider D&O for personal defense-cost exposure.
Investor involvement, board structure, and regulatory exposure help determine need. Compare individual and entity protection.
A useful first question is whether leaders can be indemnified from company funds if sued; Side A is designed for circumstances where indemnification is unavailable, and Side B reimburses covered indemnification. Side C is relevant only if the company itself has an applicable grant. A board with outside directors, financing requirements, or recurring governance decisions may have different needs from a closely held owner-operated firm. Check the bylaws, investor agreements, who qualifies as an insured person, and exclusions for prior matters or claims among insured parties.
