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DAO Insurance

In the rapidly evolving world of Decentralized Autonomous Organizations (DAOs), keeping your assets and operations safe and secure is crucial. FounderShield provides customized insurance solutions that are specifically designed for DAOs so you can have complete peace of mind knowing that your organization is fully protected in this ever-changing decentralized landscape.

Industry Overview

The DAO industry is rapidly reshaping the landscape of decentralized finance. As of 2023, are currently 179 treasuries exceeding the $1 million mark, each with its unique structure and governance.

Collectively, these entities manage assets totaling $18 billion, encompassing both liquid and vested assets. Notably, as of 2023, the leading five DAO treasuries alone account for a substantial $11 billion distributed across diverse token assets.

DAOs leverage smart contracts, granting token holders significant voting power in decision-making processes. This revolutionary shift from a central governing body to a community-driven model has marked the dawn of a new era in the insurance industry.

Why Is Insurance for
D A Organizations Important?

Decentralized Autonomous Organizations (DAOs),  can leverage insurance to be protected against several risks, improve the efficiency of their business processes, and position themselves as credible within the industry.

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Ensures Stability and Resilience

In the decentralized finance landscape, DAOs are susceptible to unforeseen challenges. Founder Shield’s insurance products are designed to provide stability, protecting against potential risks that could compromise your DAO’s operations and assets.

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Empowers Token Holders

Our insurance solutions empower token holders by safeguarding their voting rights. With Founder Shield, you can fortify the integrity of your DAO, ensuring that decisions align with the collective interests of token holders.

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Addresses Legal Complexities

Navigating the legal complexities of DAOs is crucial. Founder Shield specializes in insurance products that cater to the unique needs of DAOs, providing comprehensive coverage against legal uncertainties that may arise in this decentralized landscape.

Adapts to Industry Evolution

As the DAO landscape evolves, so does the need for adaptable insurance solutions. Founder Shield is committed to staying at the forefront of the industry, continuously refining our insurance products to meet the dynamic requirements of DAOs.

DAO Insurance
Coverage & Policies

These coverages form the foundation of any risk management program for Decentralized Autonomous Organizations :

general liability
General Liability Insurance Learn More
General Liability Insurance

General liability insurance provides protection against claims of bodily injury, property damage, and personal injury (like libel or slander) that can arise from business operations. For DAO companies, which may interact with clients or conduct events in physical spaces, this insurance is vital. It safeguards against claims that could arise from accidents or mishaps during such interactions, protecting the organization’s financial health.

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Workers’ Compensation Learn More
Workers’ Compensation

Workers’ compensation insurance covers medical expenses and a portion of lost wages for employees who are injured or become ill due to their job. DAOs, though often operating digitally, may have employees or contributors in various locations who could suffer work-related injuries or illnesses. This coverage ensures compliance with legal requirements where applicable and provides crucial support to team members, fostering a safe and protected work environment.

Employment practices liability (EPL) Learn More
Employment practices liability (EPL)

EPL insurance protects against claims from employees alleging workplace issues like discrimination, wrongful termination, harassment, or other employment-related grievances. DAOs, which often have unique and evolving employment structures, can benefit from this coverage as it provides a safety net against the legal and financial repercussions of such claims, particularly important in diverse and rapidly changing work environments.

DAO Specific
Insurance Coverage

These policies are essential for or can be tailored to the needs of companies operating in Decentralized Autonomous Organizations :

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Directors and Officers Learn More
Directors and Officers

D&O insurance covers the personal liability of directors and officers for decisions and actions taken on behalf of the organization. In DAOs, where decisions are often decentralized and can involve significant financial or operational risks, D&O insurance is crucial. It provides assurance to those in decision-making positions, protecting them against personal financial losses from lawsuits.

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Errors and Omissions Learn More
Errors and Omissions

E&O insurance, also known as professional liability insurance, covers legal fees and damages for lawsuits alleging negligence or inadequate work. For DAOs, which may provide services or advice, E&O insurance is essential. It protects against claims that the organization failed to perform its services properly, particularly important in the rapidly evolving and innovative field of decentralized services.

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Cyber liability Learn More
Cyber liability

Cyber liability insurance provides coverage for a business’s liability in the event of a data breach involving sensitive customer information. DAOs, operating primarily on digital platforms and handling sensitive data, are particularly susceptible to cyber threats. This insurance covers costs associated with data breaches, including legal fees, notification costs, and recovery measures, making it an essential component of risk management for DAOs.


Crime insurance protects businesses from losses due to crimes such as theft, fraud, embezzlement, or forgery. For DAOs, where financial transactions and assets are often managed digitally, the risk of cybercrime, internal fraud, or theft is significant. Crime insurance provides financial protection against such criminal activities, ensuring the security of the organization’s assets.

DAO Insurance Costs

The costs associated with DAO insurance can vary significantly based on factors such as the complexity of smart contracts, the scope of coverage, and the specific needs of your DAO. Founder Shield offers transparent pricing models, ensuring you receive a tailored insurance solution that aligns with your budget and risk tolerance.

Founder Shield understands that one-size-fits-all solutions don’t suffice in the DAO landscape. Our team works closely with you to customize insurance policies that cover your DAO’s unique risks, providing a cost-effective approach to comprehensive protection.

Different insurance companies approach DAO coverage differently. Founder Shield offers transparent and competitive pricing, ensuring you get the best value for your insurance investment.

DAO Insurance Frequently Asked
Questions (FAQ)

The cost of insurance for DAO (Decentralized Autonomous Organization) businesses can vary significantly based on factors such as the size of the DAO, its operational scope, the specific risks involved, and the types of coverage needed. Given the innovative and often complex nature of DAOs, insurance premiums can be higher than traditional businesses, especially for policies like cyber liability and D&O (Directors & Officers) insurance. Costs can range from a few thousand dollars to much higher, depending on the level of coverage required. It’s important for DAOs to get quotes from insurance providers who understand the unique nature of decentralized organizations to accurately assess premiums.

While there are no specific legal requirements mandating DAOs to have insurance, it is highly advisable. The unique structure and operations of DAOs expose them to specific risks like cyber threats, operational liabilities, and managerial uncertainties. Insurance policies such as cyber liability, D&O, and general liability can provide critical protection against these risks. While not legally required, having insurance can be a prudent decision to safeguard the DAO’s assets and its members’ interests.

The amount of insurance needed by a DAO depends on several factors, including the scale of its operations, the type of activities it undertakes, the value of its assets, and its risk exposure. A comprehensive risk assessment is essential to determine the appropriate level of coverage. This assessment should consider potential risks like cyber attacks, legal liabilities from decisions made by its members or directors, and operational risks. Consulting with an insurance provider experienced in working with decentralized organizations can help in determining the right amount of coverage.

Smart contracts act as the lifeblood of Decentralized Autonomous Organizations (DAOs). These self-executing contracts, coded on blockchain technology, automate the operational aspects of a DAO, eliminating the need for centralized leadership and human intervention. They facilitate transparent and immutable decision-making, fund allocation, resource management, and membership governance, ensuring the smooth and efficient functioning of the DAO based on predefined rules and consensus-driven voting mechanisms. Essentially, smart contracts enable DAOs to operate autonomously, fostering trust and accountability among members while streamlining operations.

Obtaining insurance for a DAO involves consulting with insurance providers who have expertise in covering new and emerging technologies, including blockchain and decentralized systems. It’s important to approach insurers who understand the unique nature of DAOs and can offer tailored policies. This may involve providing detailed information about the DAO’s operations, governance structure, and risk management practices. It might also require working closely with a broker or agent who can navigate the complex landscape of insurance for decentralized entities.


Business liability insurance is a broad type of insurance that provides protection against claims resulting from injuries and damage to people or property. This coverage typically includes general liability, which protects against claims of bodily injury and property damage, as well as product liability, professional liability, and other types of liabilities. For DAOs, business liability insurance is crucial as it can cover a range of risks from operational activities, especially when interacting with clients, contractors, or conducting physical or digital operations.

Yes, DAO insurance policies can often be customized to meet the specific needs of the organization. Given the unique structure and risk profile of DAOs, it’s important to tailor the coverage to address specific concerns such as cyber threats, fiduciary duties of the directors or members, and operational liabilities. Customization can involve adjusting coverage limits, deductibles, and including or excluding specific risks. Working with an insurance provider experienced in decentralized organizations is key to effectively customizing a policy that provides appropriate and comprehensive coverage.

DAO Insurance Quotes

Finding DOA insurance coverage doesn’t have to be painful. We aim to make the purchasing experience as streamlined and intuitive as possible.

Get a quote

Use our custom-built digital platform to get quotes fast. We automate clerical tasks that plague traditional insurance brokerages, giving us more time to be responsive and alert to your company’s needs.

Pair with a specialist

No two organizations are the same. Our team of coverage experts partners with your team to engineer your risk management strategy, together. We take the time to understand the intricacies of your company to get you the best possible coverage.

Stay one step ahead

To do better, you need to know better. With changing political, technological, legal, and economic landscapes, staying ahead of the curve is critical.

Our in-house team is tapped into the latest developments in your industry, proactively ensuring you’re covered.

Wil Hamory Vice President
Wil Hamory, Executive VP and Financial Industry Lead

Your DAO Insurance Specialist

Wil isn’t your average insurance guy. He thrives in the dynamic world of cyber risks, keeping pace with Founder Shield’s innovative clients.  His mission? Tailoring cutting-edge risk solutions to propel their growth. Wil’s a cyber security veteran, having witnessed the evolution of threats firsthand.  He’s helped countless Fintech, Healthtech, and Crypto companies navigate legal hurdles and scale their businesses securely.  Before joining Founder Shield, Wil honed his skills underwriting cyber liability for large private and public entities at Zurich. A University of Delaware grad, Wil has dedicated his career to empowering clients to conquer cyber threats and stay ahead of the curve. 

Why Choose Founder Shield?

Founder Shield is a leading insurance provider that specializes in offering comprehensive coverage for DAO companies, offering numerous benefits and advantages over traditional insurance providers. Here’s a breakdown of some of the key features and benefits that you’ll enjoy with us:

Benefits of Choosing Founder Shield:
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Industry Expertise

Founder Shield is focused on protecting rapidly evolving startups. We ensure that our products are tailored to meet the unique needs of Web3 businesses.

Customized Solutions

Founder Shield offers bespoke insurance policies that are designed specifically for each client’s needs, ensuring comprehensive coverage that addresses the unique risks associated with digital asset operations.

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Fast Quotes

With Founder Shield’s streamlined quoting process, you can receive a personalized quote for your insurance quickly, allowing you to make informed decisions quickly.

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Ease of Use

Founder Shield’s user-friendly digital platform makes it easy to manage your insurance policies, submit claims, and access important documents whenever you need them.

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Dedicated Support

Founder Shield provides exceptional customer service, with dedicated account managers who are always available to assist you with any questions or concerns you may have about your insurance coverage.

Scalable Coverage

As your business grows, Founder Shield’s insurance policies can grow with you, ensuring you always have the right level of coverage for your changing needs.

Founder Shield is a preferred choice for Web3 businesses because we specialize in the industry. We offer flexible and customized insurance policies, a speedy quoting process, and exceptional customer service with dedicated account managers.