The short answer
Start the D&O application before the funding deadline and disclose the pending round. Financials, board composition, policy terms and the transaction can affect pricing and coverage. Earlier binding is not a guaranteed discount. Ask investor counsel what evidence is required and confirm carrier approval before relying on a closing date.
Use this guide to prepare questions, not to establish coverage. Any unsourced costs, limits or timing ranges are illustrative planning examples, not quotes, verified market averages or carrier commitments.
Typical D&O limits and cost by funding round
| Round | Typical limit | Annual premium |
|---|---|---|
| Pre-seed | $1M | $2,500 to $5,000 |
| Seed | $1M | $3,000 to $6,000 |
| Series A | $2M to $3M | $6,000 to $12,000 |
| Series B | $3M to $5M | $12,000 to $25,000 |
Illustrative annual budgeting ranges, not quotes or measured placement averages. Actual pricing requires underwriting; taxes and fees may be additional.
Limits track board size and capital raised. A lead investor taking a seat will usually say what it expects; what investors require at each stage covers the rest of the program.
Why the pending round belongs in the application
D&O underwriting can consider capital raised, financial condition, the proposed transaction and other factors. Disclose the pending round and ask how closing affects the offered terms, notices and premium. Starting early gives time to resolve questions; it does not guarantee a discount or mean the carrier will ignore the new financing.
Working back from your closing date
| Days before closing | Step |
|---|---|
| 21 | Start the application: cap table, latest financials, board list, term sheet |
| 14 | Indications from 2 to 4 markets |
| 7 | Choose limits and terms; sign the application |
| 3 | Bind; send the declarations page to investor counsel |
| Closing | Proof of D&O in the data room |
This is an example planning sequence, not a carrier service commitment. Start earlier where possible, and confirm what can realistically be completed before the deadline.
What lead investors look for in a startup D&O policy
- Side A, B and C coverage, so individuals and the company are both protected
- A limit that matches the board’s size and the capital raised
- The investor’s board designee covered as an insured person
- Narrow exclusions for claims by major shareholders, with carve-backs
For how each part works, see D&O coverage for startups.
Who can bind D&O before your closing
Online platforms quote D&O for simple seed-stage companies. Priced rounds with institutional leads, multiple board seats or prior claims usually need underwriting. StartupInsurance.ai runs the timeline from your closing date and quotes several markets at once. If funds depend on proof of coverage, see insurance an investor requires before releasing funds. For the full program at Series A, see the Series A insurance bundle, and for every line by stage, startup insurance cost by funding stage.
Get a contract check
Send us your term sheet and closing date. We provide an initial written review within one business day after receiving the necessary information, with questions and next steps. Carrier quotes, coverage decisions and policy changes may take longer. Get a free contract check.
A few more answers
Frequently asked questions
Does D&O cover the director our investor puts on the board?
Yes. Directors are insured persons under the policy, including investor designees. Venture funds often carry their own fund-level coverage too, which may sit above yours for that director.
What happens to my D&O premium after the round closes?
Ask the carrier how the disclosed financing affects terms, notice obligations and pricing. A transaction can trigger policy provisions; do not assume it affects only renewal or that it cannot be a change in control.
Does D&O cover a dispute with my own investors?
It depends on the insured-versus-insured, shareholder and other exclusions, and any exceptions. Shareholding thresholds and definitions vary. Review the actual wording rather than rely on a generic percentage.
What documents do I need for a D&O application?
A cap table, the latest financial statements, a list of directors and officers, the term sheet for any pending round, and details of any past claims or demand letters.
Can I raise my D&O limit later in the year?
Usually, yes. A carrier can increase the limit mid-term, or you can add an excess policy. Either is priced for the remaining months of the policy year.
General information, not a coverage determination or legal advice. Unless a specific source is identified, prices and timing ranges are illustrative planning examples—not measured market averages, quotes or guarantees. Policy wording, carrier, state and your company’s operations determine what applies.