Directors and Officers (D&O) insurance is designed to protect C-suite officers and board members if they’re sued over decisions they made on the startup’s behalf.
Typically, a D&O incident might work like this:
Someone sues a member of your board over a decision related to your startup.
Your startup covers the legal fees associated with the lawsuit.
You make a claim on your D&O policy.
Your D&O insurance reimburses you for the legal fees.
Having a D&O policy means you can offer directors and officers peace of mind: they know they won’t have to use their personal assets to cover legal fees in the event of a lawsuit. Know you need D&O coverage?