When Should a Startup Buy D&O Insurance?

Investors may require a policy before investing. Check limits and claims-made reporting and prior-acts terms early.

Timing also affects which policy period may respond. D&O is often claims-made: the date a claim is first made and reported, the retroactive date, and prior notice can matter as much as the date of the alleged act. A later policy may exclude a matter the company knew about or reported earlier. Get written confirmation of the requested effective date and any extended reporting option, then coordinate it with the financing timeline. Do not assume a quote, application, or certificate itself means a policy has been bound.