Compliance
D&O Insurance
Quick definition
Directors & Officers liability insurance that protects the company's directors and officers from lawsuits alleging wrongful acts.
D&O (Directors & Officers) insurance protects board members and executives from personal liability for management decisions. Covers defense costs and settlements for shareholder lawsuits, regulatory actions, and employment claims. Standard term sheet condition for venture-funded startups: investors require D&O coverage before joining the board (typically $3-5M coverage at Series A, scaling up). Annual premium: $5K-$50K depending on stage and risk profile.
See this in action
Insights, guides, and tools where D&O Insurance shows up.
Frequently asked questions
- What is D&O Insurance?
- D&O (Directors & Officers) insurance protects board members and executives from personal liability for management decisions. Covers defense costs and settlements for shareholder lawsuits, regulatory actions, and employment claims. Standard term sheet condition for venture-funded startups: investors require D&O coverage before joining the board (typically $3-5M coverage at Series A, scaling up). Annual premium: $5K-$50K depending on stage and risk profile.
- Why is D&O Insurance important for startups?
- D&O Insurance is a compliance concept that matters for startup founders because it shows up in fundraising readiness, financial decision-making, and operational discipline at the stage where mistakes are expensive to undo. Founders who understand it are better prepared for diligence, board meetings, and investor conversations.
- What category does D&O Insurance belong to?
- D&O Insurance is a Compliance term in the StartupCFO finance glossary, alongside other compliance concepts that founders, CFOs, and accountants use in startup operations and reporting.
- Where can I learn more about D&O Insurance?
- Beyond this definition, see the related compliance terms below, or explore StartupCFO's insights and tools that put D&O Insurance in context. For specific situations, talk to a fractional CFO who can walk through your numbers.
Want a CPA to own this?
Registrations, filings, and deadline tracking handled so a missed obligation never surfaces during diligence.
No spam, ever. If the download doesn't start, email us.
Or talk it through:
