D&O insurance is an essential coverage for growing startups and companies and is often expected by executives and investors. In the event a director or officer is sued for actions or decisions related to the company, D&O insurance can reimburse your business for the legal costs associated with the lawsuit.

If your startup has a board of directors (or plans to have a board soon), or has raised funding from VCs or angel investors, you should be considering D&O insurance. D&O spans all industries, from fintech to biotech, and also includes non-profit organizations.

When you’re approaching experts in your industry to join your board, most of the time they will request that the company has D&O insurance. This also applies for executives you are trying to recruit into your C-Suite. By having D&O insurance, executives and board members will be comfortable joining your company, and you will be able to retain them much longer.

Small companies sometimes underestimate the possible losses from not having D&O insurance, which could be hundreds of thousands of dollars. If you’re still not sure whether D&O insurance is right for your business, speak to a Britely Specialist and they will help guide you through the process.

There are 3 types of D&O insurance coverages, referred to as Side A, Side B, and Side C. Each side has different coverages, and a Britely specialist can help you identify which is right for your business.

Side A: Covers the assets of directors and officers when the company refuses to or is unable to provide indemnification.

Side B: Covers companies that make the decision to indemnify their directors and officers. The coverage will reimburse the company for the costs related to the director’s or officer’s claim.

Side C: Covers the company if it is being sued for financial mismanagement or negligence.