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Innovator Insights | Insurance for Startups: Directors & Officers

Insurance for Startups: Directors & Officers Header Image

We’ve outlined da few key reasons why startups should carry D&O insurance below:

D&O insurance shields individual directors and officers from personal financial liability if they’re sued for decisions or actions taken on behalf of the company. Startups face unique risks since leaders often make high-stakes decisions quickly, which can lead to disputes or lawsuits.

Experienced executives and board members typically expect D&O insurance to safeguard their
interests. In addition, investors may require D&O coverage as a condition of funding to protect their
investments and ensure that the leadership can make decisions without the risk of personal lawsuits.

D&O policies can cover claims related to employment practices, regulatory investigations, mismanagement, breach of fiduciary duty, and misuse of company funds. For startups, regulatory scrutiny and claims can occur if a founder’s decisions impact employee rights, financial reporting, or even the environment.

Legal expenses can cripple a startup’s finances, so D&O coverage can help as it cover legal fees,
settlements, and judgments, reducing the impact on cash flow. This can be especially crucial in
the early stages when every dollar matters.

D&O coverage can help startups grow and retain experienced employees while also provide a safety net
to ensure they have the financial security to drive them forward. Many factors come in to play when determining the right coverage for you and your business so reach out to a Jones DesLauriers advisor to discuss the best option for you.



To Our Valued Clients, Canada Post is on strike, and delivery delays are expected. Please contact us to arrange payments by phone or in person to avoid any lapse in coverage. | À notre clientèle, Postes Canada est en grève et des retards de livraison sont à prévoir. Veuillez communiquer avec nous pour effectuer vos paiements par téléphone ou en personne, afin d’éviter toute interruption de votre couverture.