FOUNDER SHIELD

Directors & Officers (D&O) is unique to the commercial insurance suite as it is the only coverage designed to cover individual board members when named in a claim. Intended to protect the personal assets of key individuals when a suit is raised citing mismanagement of the company, D&O allows entrepreneurs and board members to make decisions swiftly with confidence knowing they have their bases covered.

Some key D&O considerations

• D&O Liability insurance provides coverage for defense costs and damages (awards and settlements) arising out of wrongful act allegations and lawsuits brought against an organization’s board of directors, officers, and/or the entity itself.

• If you are acting as an officer or board member, you have a fiduciary duty to your investors. This means they can hold you liable if they feel you have breached that duty. In periods of insolvency this can place your personal assets at risk as the company can no longer fulfill its indemnity agreements.

• D&O is required by almost every institutional investor term sheet. Within emerging industries it can be instrumental to attract top talent to your board and management team. The right D&O program can bolster your funding efforts and make funding rounds run smoother.

At Founder Shield, we support NYA's community with proper risk management decisions. Whichever way an investment leads - insolvency or successful exit - D&O is critical to protect key individuals in the day to day decisions made on behalf of investors. Any questions we are happy to help, feel free to reach out to whamory@foundershield.com to discuss things further.