CoverWallet is now part of Aon. You are being redirected to the Aon online platform for startups.
Directors & Officers Insurance in a nutshell
It protects board members and officers who are sued by customers, partners, competitors or regulators over decisions they make for the company. It covers legal defense (i.e. attorneys) costs and potential settlements, that otherwise would need to be paid from the personal pockets. It covers them even if they leave the startup.
Most companies buy it after raising a new round of financing, to comply with a requirement of the term sheet and the investors since they will likely put someone on the board and they want that person to be covered from legal liability.
After raising a series A, startups pay $9,600/yr on average. As a rule of thumb, if you have less than $50M in revenue, it will cost you ~$4K annually per $1M limit of coverage. Although prices can start at as low as $500 per $1M of coverage. And startups usually purchase limits between $1M and $3M.
Note: there are certain industries that have higher D&O risks (e.g., fintech or healthcare), so prices can be higher.
After submitting the application you get a quote estimation (i.e., you know the price). But before you can purchase it and activate the policy, someone at CoverWallet will need to manually verify the information provided and may request from you supporting documentation (e.g., financials).
Median cost of D&O Insurance for startups
Our Simple Process
All in minutes
Tell us about your startup
Complete our simple online application in just a few minutes.
Review your quotes
You can get instant online quotes. Have questions? Speak to our startup experts to discuss options and tradeoffs.
Step 2+ (if necessary)
Some products like Directors and Officers insurance (D&O) will require you to provide additional documentation (e.g., financials).
Manage your insurance
24/7 access to download policies and certificates, file claims, track payments, plus access to free expert advice.
You can pay annually or monthly via credit card or ACH and download your proof of insurance coverage instantly.