Get D&O Insurance for Your Business
Don’t let a lawsuit cost you your company. Protect your executive’s personal assets with D&O Insurance.
Why You Need D&O Insurance
What Does D&O Insurance Cover?
Defense Costs
Defense Costs
Covers legal fees and expenses incurred in defending against lawsuits alleging wrongful acts.
Settlements and Judgments
Settlements and Judgments
Up to policy limits, the insurance company pays settlements and judgments awarded against directors and officers.
Personal Assets Protection
Personal Assets Protection
Shields personal assets of directors and officers from being seized to satisfy judgments.
Indemnification
Indemnification
Reimburses directors and officers for legal costs and expenses they are personally liable for.
Investigation Costs
Investigation Costs
Covers costs associated with investigations into alleged wrongful acts.
Regulatory Proceedings
Regulatory Proceedings
Provides defense and coverage for regulatory investigations and proceedings.
Who Needs D&O Insurance?
Startups and Venture-Backed Companies
High growth and risk environments make protection crucial.
Private Equity-Backed Companies
Shareholders have high expectations and litigation risks are present.
Professional Service Firms
Exposed to claims related to professional negligence.
Family-Owned Businesses
Personal assets of directors and officers are at stake.
Technology Companies
Vulnerable to data breaches and cyberattacks.
Any Company with a Board of Directors or Advisory Committee
Even small companies face potential lawsuits.
How much does D&O Insurance cost?
Disclaimer: Your actual D&O insurance cost is influenced by the quantity and nature of data you store, internal controls, your industry, customer base, and revenue.
| Incidents | Cost Without Insurance |
|---|---|
|
Breach of Fiduciary Duty |
$1 million |
|
Shareholder Lawsuits |
$5 million |
|
Product Liability Lawsuits |
$10 million |
- Directors’ and Officers’ Liability Underwriting Society’s 2023 D&O Claims Study
- Securities and Exchange Commission’s 2023 Enforcement Report
- Consumer Product Safety Commission’s 2023 Annual Report
| Incidents | Cost Without Insurance |
|---|---|
|
Breach of Fiduciary Duty |
$1 million |
|
Shareholder Lawsuits |
$5 million |
|
Product Liability Lawsuits |
$10 million |
- Directors’ and Officers’ Liability Underwriting Society’s 2023 D&O Claims Study
- Securities and Exchange Commission’s 2023 Enforcement Report
- Consumer Product Safety Commission’s 2023 Annual Report
How to Get Started
Submit an application and have our 1-1 advisor evaluate your startup’s unique vulnerabilities and potential liabilities.
Select tailored insurance policies that address your startup’s specific needs.
Connect with a trusted insurance provider and secure your startup’s future.
Testimonials
“I was referred to Founder Shield by a friend who works with technology-based startups as I do… Founder Shield was simple – go to the website, fill out the form, get a quote quickly, pay and Voila – you are insured. I need a highly rated insurer and they delivered… I highly recommend Founder Shield.”
“The Founder Shield team is a wonderful and supportive partner… Not only are they 100% devoted to insuring compliance, they provide continuous guidance. Our dedicated account manager is extraordinary – goes above and beyond to ensure all of our needs are met.”
“ Excellent and very reliable customer service. Founder Shield not only worked with us and helped us gain competitive insurance coverage in a field that is very new, they also went above and beyond in communicating directly with authorities to help us ease through the process of gaining permission to operate. ”
Case Studies
Pre-Arranged ERP Pricing
Pre-Arranged ERP Pricing
FutureTech, a growing tech company, negotiated pre-arranged extended reporting period (ERP) pricing with their D&O insurer before being acquired by MegaCorp. This ensured coverage for claims arising from past actions even after the policy ended. Six months later, former shareholders sued the former leadership, alleging mismanagement. The pre-arranged ERP enabled the D&O policy to respond, with the insurer covering legal costs and a $3 million settlement, protecting the former leadership from personal liability.
Broad Change in Control and M&A Provisions
Broad Change in Control and M&A Provisions
During a merger with XYZ Industries, ABC Manufacturing’s board provided financial data crucial for valuing the company. After the merger, shareholders sued the board for misrepresenting financial metrics and failing to disclose risks, undervaluing the company. ABC’s comprehensive D&O policy with broad M&A provisions provided defense and coverage for the board, resulting in a $5 million settlement and protecting them from personal liability.
Class Certification Investigation
Class Certification Investigation
MNO Corporation launches a new, innovative smartphone line, but reports emerge of overheating and fire risks. Regulatory authorities investigate and mandate a recall, leading to financial losses. Shareholders sue the board for negligence and breach of fiduciary duty, alleging they ignored safety concerns and withheld information. MNO’s D&O insurance may cover defense costs and potential settlements, protecting the board’s personal assets and the company’s balance sheet. While product liability might be excluded, the lawsuit focuses on board actions, making the D&O policy likely to respond.
Employed Lawyers
Employed Lawyers
GlobalTech’s in-house lawyers faced lawsuits from competitors alleging patent infringement. One case involved potential damages of over $10 million. A shareholder accused the lawyers of unethical conduct and negligence, prompting them to seek protection under the company’s D&O insurance with employed lawyers’ coverage. The D&O insurer appointed an independent legal team for the lawyers and, after negotiations, settled the claim for $2 million, covered by the policy. This protected the lawyers’ reputations and personal assets, allowing them to continue defending GlobalTech.
Schedule a time to speak with a D&O Insurance Advisor
