Protection for Your Company's Leaders
A shareholder lawsuit named every board member personally. Their homes, savings, and future earnings were all on the line.
A tech startup raised $5 million from investors. When the company missed revenue targets, investors sued the CEO and board of directors for "misrepresentation" and "breach of fiduciary duty."
The claims were baseless. The company made appropriate disclosures. But the legal defense cost $450,000—and that was before the case settled for $750,000 to make it go away.
The board members' personal assets were at risk the entire time.
Without D&O insurance, they would have faced bankruptcy.
Individual Protection
When the company CAN'T indemnify directors:
Pays directors directly for legal defense, settlements, and regulatory costs.
Company Reimbursement
When the company DOES indemnify directors:
Reimburses the company while still covering directors.
Entity Coverage
Protects the company itself from:
Critical for public companies and those planning IPO.
Any organization with a board of directors or officers needs D&O coverage.
SEC requirements, shareholder litigation, board recruitment necessity
VC-backed startups, PE portfolio companies, family businesses with outside directors
Board member protection, volunteer retention, grant requirements
A company's board rejected a $50 million acquisition offer, believing they could get more. Six months later, the company's value dropped to $20 million. Shareholders sued for "breach of fiduciary duty."
Without D&O:
Each board member faced $200K+ in legal fees. Two considered resigning.
With D&O:
Legal defense covered. Settlement covered. Board remained intact.
A healthcare company's billing practices came under government investigation. The CEO and CFO were personally subpoenaed. Legal costs to respond exceeded $300,000 per person.
Without D&O:
Personal funds depleted for legal defense. Financial devastation.
With D&O:
Investigation costs fully covered. Company cooperated without personal ruin.
Small Private Co.
$5K-$10K
per year for $1M-$2M limits
Mid-Size Private
$15K-$40K
per year for $3M-$5M limits
Public Company
$50K+
depending on market cap
Compare to the cost of ONE claim without insurance:
$300,000 - $1,000,000+
Experienced directors expect adequate coverage. The best companies don't ask them to risk their families' financial security.