As stated in our term sheet, we recommend you ****take out D&O insurance for your directors and officers within 90 days of the investment round if you haven't already. We're happy to support you in that process if needed.

Our insurance company, WTW, might be able to provide an insurance package, including D&O insurance. If you're interested in an offer, please reach out to Jacob, and he will guide you through the process.

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Why do you need D&O Insurance? → Attract & protect top talent.

Think of D&O insurance as a safety net for your directors and board members. If anyone sues the company over decisions made during their tenure, this coverage can help with legal costs, including defense expenses, settlements, and damages. The “why” really comes down to two things:

1. Attract top talent: Having D&O insurance makes your startup more attractive to potential executives and board members. They want to know they’re protected from liability, and most experienced candidates expect this kind of coverage.
2. Keep your leadership team at ease: D&O insurance gives your directors and officers peace of mind by protecting their personal assets if they are sued for their decisions. </aside>

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How much does it cost? → It depends.

Anything that increases the likelihood of you getting sued will increase the price of your insurance. Here are some factors that can bump up the price (i.e., premium):

• Industry risk: Some industries, like technology, healthcare, and financial services, are more “risky” (e.g., regulatory scrutiny and litigation exposure), which can drive up costs.
• Company size & revenue: If your company is larger or generates more revenue, you're likely dealing with more complex risks. This complexity (and the fact that there is something “to go after”) can lead to higher premiums.
• Country: Where your business operates matters, too. Jurisdictions with higher regulatory requirements or more litigation-heavy, like the U.S., will face higher D&O insurance costs.
• Coverage limits & policy terms: If you want higher coverage limits or broader policy terms—like protection against regulatory investigations or employment-related claims—expect to pay more. </aside>

RESOURCES

D&O Insurance Terms & Pricing Benchmark

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