Pre-IPO Companies May Need Stronger D&O Coverage

Concerns regarding regulations and compliance that are in need of individuals with more experience than founders and employees of the lead venture capital investors have startup companies preparing to go public regularly adding high-powered, independent directors to their boards.

A rise in stockholder class actions against directors of publicly traded companies has driven directors of these companies to insist upon enhanced directors and officers (D&O) insurance to protect them from exposures to these suits. However, directors of private companies have not followed suit. the same cannot be said of private company directors.

You can read the full story at Law360.