D&O Liability Insurance
D&O insurance: $1M-$25M typical. Protects directors/officers personally from suits. SMB $2K-$10K/yr; mid-mkt $10K-$50K; public co much higher.
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Directors & Officers (D&O) liability insurance protects board members and executives from personal financial loss due to lawsuits over their decisions made on behalf of the company. Essential for any company with a board, especially after a funding round.
What D&O Covers
Allegations of breach of fiduciary duty, misrepresentation, mismanagement, breach of regulatory rules, employment practices (EPLI extension), securities fraud (public companies). Defense costs (often 50%+ of total). Settlements and judgments.
Three Coverage Components
Side A: directly to individuals when company can't indemnify (bankruptcy, derivative suits). Side B: reimburses company for indemnifying officers. Side C: covers company itself for securities claims (public co). Side A is most critical for personal protection.
Premium by Stage
Seed: $2K-$5K. Series A: $10K-$20K. Series B: $20K-$50K. Series C+: $50K-$150K. Public company: $250K-$2M+. Major increase at IPO. Plus deductible: $25K-$1M typical. Plan budgeting accordingly.
Last updated May 2026. Sources: III D&O Coverage.