D&O Insurance is one of the most important types of insurance for startups. You’ll undoubtedly see it on the term sheet of the vast majority of institutional investors because it’s a big risk exposure for both you (the founder) personally and your investors.
We can’t resist talking about this Target Data breach incident. It has become a major talking point in tech community and the news that keeps surfacing makes for a great little case study. So in the latest bit of news to surface:
One of the major products we provide for our clients is Directors and Officers Insurance. Admittedly 90% of our D&O clients sought us out because their investors required them to get coverage. Don’t be mistaken, though…startups need D&O insurance regardless of the investor situation.
While this list is definitely not exhaustive, I wanted to briefly shed some light on a couple of the reasons why startups should be need insurance and should look into coverage options regardless of where they are in their life cycle.