When D&O usually shows up
· Shield & Stallion Insurance LLC
Founders search “startup D&O” because a term sheet arrived, or because someone joining the board asked whether the company maintains directors and officers cover. They rarely search it because they want a lecture on management liability. The trigger is a priced round or an outside director. It is not a statute that says every Delaware C-corp must buy a policy on day one.
Too early, on time, too late
Too early, in the files we see, is two founders, no outside money, and no board seats beyond yourselves. There may still be a reason to talk about cyber and Technology E&O if a customer wants a certificate. That is a different product. D&O is about claims that the business was run badly: investor suits, fundraising disputes, regulatory actions, and some employment-related management claims depending on the form.
On time is a priced round, a lead who is used to seeing D&O at close, or the first outside director. Outside directors commonly expect the company to maintain coverage, including Side A protection for them personally when the company cannot indemnify. Limits are set in underwriting. We will not put a premium or a limit on this page as if it were a quote.
Late is the close next week and nobody has submitted an application. If that is the file, say so in the notes. Deadlines change how we sequence markets. They do not create an instant bind. Binding authority sits with the issuing carrier or authorized market. A licensed advisor still reviews the submission.
What D&O is not
It is not cyber. It is not Tech E&O. A customer saying the product failed still belongs on those policies. Mixing them up is how a closing checklist gets a certificate that does not answer the question the investor asked. D&O is also not workers compensation, and it is not a substitute for employment practices liability as headcount rises, even when some markets package management liability on one form. We will say what you are buying.
Who is an “insured person” is defined in the form, not on this page. Injuries, wage claims, and product failures live on other policies. After a market quotes, we walk the sides of the form in plain language. Before that, this page is only a map of when the conversation usually starts.
Next to the operating stack
Customers and data do not wait for the round. Most startups still need a conversation about cyber and Tech E&O to sign the next MSA, D&O or not. If you have employees, workers compensation is a separate question, state by state. We place coverage only where Shield & Stallion Insurance LLC, or a licensed producer working the file, is authorized. Submitting an application is an inquiry, not an offer to sell insurance in every state.
If counsel or the lead is asking for D&O, treat it as part of closing rather than optional branding. If nobody is asking and there is no outside capital, we can wait. The application lets you say pre-revenue and name the funding stage so we do not send you a generic trade questionnaire.
This note is educational. It is not a quote, a recommendation, legal advice, or a finding that you have or lack coverage. The policy form, including exclusions and endorsements, controls. See the insurance disclosure.
Start an application · Startup D&O insurance · Startup insurance · Coverage: D&O