Startup stress: Offensive and defensive tactics for D&O insurers
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There are challenges in insuring startups, and the Theranos scandal that engulfed the private startup blood-diagnostic testing company brought fresh attention to D&O risks, particularly private D&O and startups. The Theranos story demonstrates that specialized startups represent challenging underwriting opportunities. Theranos also taught us that insurers must scrutinize board membership, capitalization and compliance planning.
Our P&C Trend Spotlight looks at how unique pressures on startups create D&O risks that are not present with public companies. Also of note, private startups fail at alarming rates. And, even where there are intentional acts alleged, the duty to defend may partially, or fully, erode private D&O insurance limits. Get more details, including how designated specialists may be able to assist in identifying the viability of startups and make more prudent risk selections, in our publication "Startup stress: Offensive and defensive tactics for D&O insurers".