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Directors & Officers (D&O) Insurance
D&O protects the personal assets of your directors and officers when they face lawsuits alleging mismanagement, breach of fiduciary duty, or regulatory violations.
What is D&O insurance?
If your company has a board of directors, investors, or officers making business decisions, D&O insurance is essential. It covers legal defense costs and settlements when leadership is sued — by investors, regulators, competitors, or employees — over decisions they've made for the company.
For venture-backed companies, D&O is scrutinized by investors at every funding round. Inadequate limits or hidden exclusions can delay or kill a close.
Side A DIC: protection for individual board members
Independent directors and board members increasingly ask for Side A Difference-in-Conditions (DIC) coverage before they'll take a seat. Side A DIC sits above your primary D&O tower and responds when the company can't or won't indemnify — insolvency, derivative actions, or a refused claim — and "drops down" to fill gaps and exclusions in the underlying policy. It protects directors' and officers' personal assets when they are most exposed, and it's often the difference between recruiting the board you want and losing them. We structure and place Side A DIC alongside your primary program.
Industries that need D&O coverage
→ From the blog: how to get D&O bound fast enough to close your term sheet
Get D&O Quotes →
Frequently Asked
Common questions
Will my coverage meet vendor and customer contract requirements?
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Yes. Investors, customers, landlords, and partners often require specific policies — D&O, Tech E&O, Cyber, Crime — at minimum limits, with additional-insured or waiver-of-subrogation language. We read your contracts, place coverage that satisfies those requirements, and issue certificates of insurance quickly so a deal never stalls on paperwork.
Where can I get D&O insurance for my startup?
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Alton Risk places D&O insurance for startups at every stage, from Seed through IPO. We benchmark coverage limits against peer companies at your funding stage, prepare your management team for underwriter questions, and access specialty carriers through E&S, Lloyd's, and Bermuda markets. Every prospective client receives a coverage review.
How much does D&O insurance cost for a startup?
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D&O insurance premiums for early-stage startups typically range from $2,000 to $15,000 per year at Seed and Series A, depending on industry, revenue, funding amount, and claims history. AI and crypto companies often pay higher premiums. Alton Risk shops multiple carriers to ensure competitive pricing.
What's the difference between Side A, Side B, and Side C D&O coverage?
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Side A covers directors and officers personally when the company cannot indemnify them — critical during bankruptcy or regulatory action. Side B reimburses the company when it indemnifies executives. Side C covers the company itself in securities claims — essential for public companies. Most startups need all three.
Do VCs require D&O insurance before a Series A?
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Yes. Most institutional investors require D&O insurance with specific minimum limits before closing a Series A. Many term sheets also require Cyber, Tech E&O, and EPL. A coverage review before fundraising prevents last-minute delays at close.
When should a startup get D&O insurance?
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Founders typically need D&O before taking institutional funding, adding independent board members, or making their first executive hire outside the founding team. The earlier you get proper D&O, the better your pricing and terms on future renewals.
Can't find an answer to your questions? Reach out to our team →