Hidden D&O Insurance Perks Startups Can't Ignore
Real-World Examples and Statistics
The importance of D&O insurance is underscored by real-world scenarios where startups have faced significant legal challenges. For instance, a 2020 survey revealed that 26% of private companies experienced a D&O loss in the past three years, with the average loss amounting to $387,0004. Such figures highlight the potential financial impact of not having adequate coverage.
Cost Considerations and Options
The cost of D&O insurance varies significantly based on factors such as company size, industry, and risk profile. Startups can expect premiums to range from $5,000 to $10,000 annually for basic coverage, though this can increase with additional protections or higher risk factors5. It's advisable to search options and compare policies to find the best fit for your business needs.