Protect the Investment: Require Portfolio Companies to Purchase Strong D&O Coverage
Directors’ and officers’ liability insurance is a key resource for funding defense and settlement of claims without depleting the insureds’ assets. Private company D&O insurance, in particular, can provide exceptionally broad coverage to the company, its individual directors, officers, and sometimes even employees against shareholder litigation and derivative actions, criminal and regulatory investigations, and other business litigation claims based on negligence or breach of duty theories.
This article I wrote for VC-List presents guidelines and key policy features to ensure that the PC’s insurance provides meaningful protection to the board members and the private equity or venture capital firm.
You can read the full article on VC-List‘s website: Protect the Investment: Require Portfolio Companies to Purchase Strong D&O Coverage