What is Consequences of not having D&O insurance?

While not legally mandatory for all private companies, not having Directors and Officers (D&O) liability insurance is a major risk. It protects directors from personal liability in case of lawsuits related to their decisions. Most VCs will insist on the company taking a D&O policy after they invest.

Startup Example: A director is sued by a disgruntled ex-employee. Without D&O insurance, the director has to bear the entire cost of litigation personally.

We advise on risk mitigation as part of our vCFO services.