Foundational Explainer · 10 min read
D&O protects directors, officers, and the company itself against claims arising from how the company is governed. Most startups buy D&O when they take outside investment.
D&O has three insuring agreements: Side A protects individual directors and officers when the company can't indemnify them; Side B reimburses the company when it does indemnify them; Side C covers the company itself for securities claims.
Seed: $1M–$2M is typical for a small board with one or two outside investors. Series A: $3M–$5M; expect investors to ask about your D&O during diligence. Series B/C: $5M–$15M depending on round size and board composition. Pre-IPO: A full D&O tower with Side A DIC, often $50M+ aggregate.