D&O insurance for startups
Directors and officers insurance, also known as management liability insurance, covers the risks faced by decision makers.
What D&O cover do startups need?
Although commonly required by investors, it can be a challenge for early-stage businesses to get D&O cover.
Our directors and officers insurance is specifically designed to provide both the highest level of protection and the flexibility that early-stage and high growth businesses need.
- Pay by the month
- Worldwide cover
- Add and remove cover as you grow - no fees
- Claims arising out of insolvency
Get D&O cover for your startup in less than 10 minutes
Change or cancel cover at any time. No penalties.
Why do startups need D&O cover?
Meeting VC requirements
Although it's not a legal requirement, many investors won't consider investing in a business that doesn't have D&O insurance in place. This is because from their perspective, the potential repercussions of a poor decision or mistake at management level is too high a risk to take without the appropriate cover.
Starting a business is exciting, but it's also highly stressful and fast-paced. We all make mistakes, but as a director, this could put you and your startup in a vulnerable position. Whether in relation to a financial reporting error, misrepresentation in a pitch deck, a health and safety breach, or allegations of cyber-bullying, D&O can cover legal, compensation and regulatory costs.
D&O cover provides financial protection for fines, regulatory costs and legal expenses on three levels. 1) For you and your directors' expenses. 2) For expenses paid by your company on behalf of you and your directors. 3) For costs incurred by the company itself, if it's named in the lawsuit.
We've made insuring your business simple. Get started.
How is our cover tailored to startups?
Our D&O cover is designed to meet the needs of startups and high-growth businesses. Here's why.
Single event limits
Limits available up to £2m for each event and apply separately for each single event (unlike most policies).
No 'major shareholder exclusion'
Many policies will exclude claims brought about by a shareholder with more than 15% ownership. We allow claims by any shareholder, regardless of their stake.
Policies that do cover startups will often exclude claims related to insolvency. Ours will cover claims related to insolvency if your company had access to 12+ months runway at the time of setting up the policy.
Traditional policies require companies to be 2+ years old or profitable. Ours does not.
Cover for your company and its subsidiaries anywhere in the world. Plus automatic cover for all your past, present and future directors and managers.
No excess applies for claims made by directors, officers or employees.
What other insurance does my startup need?
As a director or manager, there's plenty at stake with each business decision you make. Directors and officers insurance protects your personal liability, but there are a number of other covers to consider when insuring your startup. We've listed the key covers to think about, below.
Public liability insurance
Whether or not you have public liability cover could mean the difference between your startup recovering or going bankrupt, if a member of the public were to sue your for injury or damage. Our public liability comes with product liability cover to cover compensation costs if you're sued for injuries or damage caused by your products.
Employers liability insurance
Professional indemnity insurance
If you offer a professional service or advice, professional indemnity insurance is something to seriously consider. It will cover your legal costs if you make a mistake, or if a client suffers a financial loss as a result of your professional services. It's not a legal requirement, but some clients will insist on you having it.
Office contents and equipment insurance
A straight-forward cover, but one that's easy to over or under-insure. Contents and equipment cover cover your office furniture and equipment, including portable items such as laptops and phones, that are easily lost or damaged.
A commonly misunderstood product, cyber insurance is relevant to most businesses. It offers protection against cyber risks, including data loss and breaches. With GDPR regulations in force, a data breach could land you with a fine of €20m or 4% of annual turnover – whichever is higher - and a PR disaster.
Customise your cover
To simplify things, we've categorised our covers into three groups: essential covers, professional covers, and management covers. You'll be guided through these different options during the quotation process.
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Authorised by the FCA
The FCA supervises UK financial services firms to protect consumers. We are directly authorised and regulated by the FCA and our Firm Reference Number is 656459. These details can be confirmed on the Financial Services Register at www.fca.org.uk or by calling the FCA on 0845 606 1234.