At Conexus Insurance Partners, we see it often: privately held businesses juggling growth, innovation, and a web of legal and regulatory risk. Directors & Officers (D&O) insurance for private companies isn’t just a line item on the budget—it’s a strategic safeguard that keeps leadership focused on building the future, not fighting yesterday’s battles.
7 REASONS D&O BELONGS IN
YOUR 2025 GAME PLAN
1. Shield the people who drive your business
Your bylaws may promise indemnification, but promises don’t pay legal bills. A well‑structured D&O policy helps cover defense costs, settlements, and judgments—so your executives’ homes, retirement funds, and peace of mind stay intact.
2. Protect capital when legal costs spike
The newest data shows private‑company D&O losses averaging well into seven figures. One surprise lawsuit can drain growth funds faster than you can say “motion to dismiss.”
3. Tackle litigation head‑on
Employment disputes, trade‑secret clashes, shareholder allegations—today’s private companies face a lawsuit landscape once reserved for the Fortune 500. Individual directors and officers are often named first.
4. Stay ahead of regulators
ESG disclosures, cybersecurity rules, and state enforcement actions now reach deep into private enterprises. D&O coverage helps offset the cost of investigations and civil penalties that come with heightened scrutiny.
5. Speed up deals and funding rounds
Lenders, investors, and acquirers ask two questions up front: “Show me the financials” and “Show me the D&O policy.” Demonstrating coverage can streamline due diligence and enhance valuation.
6. Cover emerging risks—AI bias, data privacy, and more
Executive decisions around tech can spark allegations of mismanagement. A strong D&O program responds when leadership is blamed for an AI‑related discrimination claim or privacy oversight.
7. Lock in favorable pricing while it lasts
Even with modest market hardening, private‑company D&O rates often land in the $5k–$10k range per $1 million of limit—with flexible terms if your loss history is clean. Well‑capitalized firms in states like Delaware can even leverage captives for added efficiency.
Conexus Takeaway
Your leadership team is driving growth, culture, and long‑term value—don’t leave them exposed. D&O coverage is one of the most cost‑effective ways to protect your people, your balance sheet, and your big ambitions.
How to Get Started
- Pull out those bylaws and indemnification agreements—spot the gaps.
- Benchmark your peers to gauge the right limits.
- Connect with Conexus to review your D&O exposure and coverage options.