Directors & Officers Liability (D&O)

What's covered by a Directors & Officers Liability (D&O) Policy?

• Protects the individual directors & officers of the company in their capacity as such
• Protects the board of directors and the entity
• Claims often come from shareholders, but can also come from regulatory bodies, competitors, and employees, and often allege mismanagement

When should a company buy a Directors & Officers Liability (D&O) Policy?

Most companies consider this coverage when they have received outside funding. Series A term sheets will usually include a requirement for a D&O policy, but as seed rounds are getting larger, it’s becoming more common to see D&O purchased at the seed level.