D&O Roadmap
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What’s Covered
Importance of D&O Insurance
Going public significantly increases the scrutiny on executives, making Directors and Officers (D&O) insurance essential for protecting them against potential lawsuits.
Layers of D&O Insurance Coverage
D&O insurance typically consists of three layers: Side A, which protects individual directors when the company cannot indemnify them; Side B, which covers the company’s indemnification costs; and Side C, which provides balance sheet protection against securities claims.
Navigating the Going Public Process
As companies prepare for an IPO or other public offerings, they must engage with brokers early to ensure adequate D&O coverage. The transition involves careful planning, including roadshow coverage and structuring the D&O insurance tower based on the company's size and risk tolerance, making it a complex but necessary process.