Directors and Officers (D&O) insurance is meant to protect your company and executive-level managers and board members if they’re sued over decisions they made on behalf of your startup.

As you establish your business, D&O insurance could defend you and your colleagues from personal damages. Unwelcome lawsuits and legal fees can easily reach six or seven figures, potentially bankrupting your business. If your startup is backed by venture capital, investors also may want D&O insurance to protect their investment.