Directors and Officers (D&O) Insurance in Los Angeles
Protection for the personal assets of your directors and officers if they are sued over decisions they make running the company, and for the company when it indemnifies them.
D&O at a glance
- Who needs it
- Private companies, startups, nonprofits, and HOAs with boards
- Who sues
- Investors, employees, customers, competitors, and regulators
- What it covers
- Defense costs, settlements, and judgments
- Coverage parts
- Side A, Side B, and Side C
- Often required by
- Investors and board candidates
What D&O insurance covers
D&O is written in parts that protect individual leaders and the company. Most policies include all three.
Side A
Covers directors personally when the company cannot indemnify them.
Side B
Reimburses the company when it indemnifies its directors and officers.
Regulatory investigations
Covers defense costs when regulators investigate leadership.
Side C
Covers the company itself for certain claims, such as securities claims.
Defense costs
Pays attorneys and experts as a claim unfolds.
Employment claims
Usually excluded from D&O and covered by EPLI instead.
What affects D&O rates
D&O pricing depends on your company’s size, finances, funding stage, industry, and growth plans. A company raising outside capital or planning an acquisition pays more.
Clean financial statements and strong governance make a company easier to insure. We review your structure and plans before we go to market.
Ways to lower your premium
- Keep board minutes and governance records current
- Share reviewed or audited financials when available
- Bundle D&O with EPLI and fiduciary coverage
- Choose a retention you could cover comfortably
- Review limits before a funding round or sale
What moves your rate
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Company size and finances
Larger and more leveraged companies pay more.
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Funding stage
Outside investors add claims exposure.
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Industry
Regulated industries see more claims.
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Ownership structure
Public, private, and nonprofit boards price differently.
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Claims history
Past claims weigh heavily on renewal.
D&O questions
Don't see yours? Call (310) 751-5979 and ask.
Do small private companies need D&O?
Yes. Lawsuits from investors, employees, vendors, and competitors can name directors personally, even at small companies.
Does D&O cover employment lawsuits?
Usually not. Employment claims are typically covered by employment practices liability (EPLI).
Do investors require D&O?
Often. Many investors require D&O before taking a board seat.
What is Side A coverage?
It protects individual directors and officers when the company cannot or will not indemnify them, such as in bankruptcy.
Find out what you should be paying
Tell us about your company and board. We compare carriers and come back with real quotes, usually within 1-2 days.