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Tech-focused Directors & Officers cover placed with leading UK insurers
D&O INSURANCE DESIGNED FOR SOFTWARE & TECHNOLOGY COMPANIES
Protect the People Making the Decisions – Not Just the Company
In software and SaaS businesses, decisions about fundraising, hiring, product roadmap, data, security and financial management are made at speed. When things go wrong, directors and officers can be pursued personally by investors, employees, regulators or other stakeholders.
Directors & Officers (D&O) Insurance helps protect the personal assets of the people running the company, responding to claims around alleged mismanagement, breach of duty, regulatory issues and shareholder disputes.
What Does D&O Insurance Cover for Software Companies?
Key protections for founders, directors and senior managers in tech-led organisations.
Core Directors & Officers Protections
- Claims alleging wrongful acts – mismanagement, breach of duty or poor decision-making.
- Allegations from investors or shareholders regarding performance or governance.
- Investigations and inquiries by regulators or professional bodies (where applicable).
- Employment-related claims directed at the board (alongside separate EPL cover where arranged).
- Defence costs – legal fees and representation for insured individuals.
- Cover for past, present and sometimes future directors and officers (subject to terms).
Additional Features Relevant to Tech Businesses
- Protection around fundraising rounds and investor relations (subject to policy wording).
- Cover in connection with statements made to customers, partners or the market.
- Support in defending claims linked to alleged mishandling of company data or IP.
- Extensions available for outside directorships in subsidiaries or certain JVs.
- Run-off cover options if the company is sold, wound up or directors step down.
- Integration with wider software insurance – PI, Tech E&O and cyber cover.
Who Is D&O Insurance for Software Companies For?
Any tech-driven business where individuals take strategic and operational decisions.
Types of Software & Tech Businesses
- SaaS companies at seed, growth or scale-up stage.
- Custom software development agencies and consultancies.
- Product-led software companies with recurring revenue models.
- Platform and API providers serving B2B or B2C clients.
- Fintech, healthtech, edtech and other specialist verticals.
- Technology-enabled businesses with software at their core.
Roles Typically Covered by D&O
- Founders and co-founders.
- Executive and non-executive directors.
- CEOs, CTOs, CFOs and other board-level positions.
- Senior managers and officers with delegated authority.
- Company secretaries (where applicable).
- Sometimes shadow or de facto directors (subject to policy wording).
Key Risks for Directors & Officers in Software Companies
Where claims and allegations against individuals can arise in tech businesses.
Governance, Strategy & Investor Risks
- Alleged misrepresentation to investors or lenders about performance or prospects.
- Disputes over use of funds from investment rounds or grants.
- Claims of breach of fiduciary duty or failure to act in the company’s best interests.
- Board-level decisions that lead to financial loss or insolvency.
- Shareholder disputes around dilution, exits or management direction.
- Regulatory scrutiny in sensitive sectors such as fintech or healthtech.
People, Data & Operational Risks
- Employment practices issues where the board is named in claims.
- Alleged failure to manage cyber risk or data protection appropriately.
- Claims linked to health & safety or duty of care to employees.
- Alleged failure to oversee key third-party suppliers or outsourcing.
- Reputational damage from product outages or security incidents.
- Personal liability concerns when signing major contracts or guarantees.
How D&O Insurance for Software Companies Is Arranged
Practical, board-level protection aligned with your growth journey.
1. Understand Your Company & Stakeholders
- We look at your stage – pre-revenue, early revenue, growth, scale-up or mature.
- We review your ownership structure – founders, investors, VC/PE involvement.
- We consider your markets – UK-only or international operations.
- We discuss board composition and any key board-level concerns.
- We check any D&O requirements from investors, lenders or major customers.
2. Build a D&O Programme Around Your Risk Profile
- Set appropriate D&O limits and deductibles based on your size and exposure.
- Consider additional extensions (e.g. employment practices) where appropriate.
- Integrate D&O with your wider software insurance programme.
- Review run-off considerations for future exit, sale or restructuring.
- Provide clear documentation for board and shareholder review.
As our SaaS business grew, investors wanted comfort that the board was protected. Having a D&O policy in place gave us confidence to make big decisions and helped satisfy due diligence.
Founder & CEO, UK Software Company
PROTECT YOUR BOARD & FOUNDERS
AS YOU GROW YOUR SOFTWARE BUSINESS
WHY SOFTWARE FOUNDERS CHOOSE INSURE24 FOR D&O
- Understanding of tech business models and growth journeys.
- Experience working with investor-backed software and SaaS companies.
- Integrated approach to D&O, PI, Tech E&O and cyber insurance.
- Clear explanations so the whole board understands what is covered.
- Support at renewal, funding rounds and major strategic changes.
FREQUENTLY ASKED QUESTIONS
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Why do software company directors need D&O insurance?
Directors and officers can be held personally liable for alleged wrongful acts in managing the company.
In a software business, investor pressure, rapid growth and regulatory considerations increase the likelihood
of scrutiny. D&O helps protect personal assets and fund defence costs.
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Is D&O only relevant for larger or listed software companies?
No. Many claims arise in private and early-stage companies, particularly where there are investors,
complex employment situations or challenging trading conditions. D&O is often recommended once you have a board and outside shareholders.
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How is D&O different from Professional Indemnity or Tech E&O?
PI/Tech E&O protect the company against claims about the software or services it provides to clients.
D&O protects individuals on the board against claims about how the company itself is run and governed.
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What D&O limit should a software company choose?
Suitable limits depend on your size, ownership structure, sector and risk appetite.
Common limits for growing tech businesses range from £1m to £5m or more. We’ll discuss factors to consider and market norms.
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Are former directors covered after they leave the company?
Many D&O policies provide cover for past directors for claims arising from decisions made while they were in office.
The detail depends on the policy and what happens to the company going forward (for example, sale or winding up).
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Does D&O cover fines or penalties?
Many fines and penalties are uninsurable in law, and policies are drafted accordingly.
However, D&O can still provide valuable defence costs cover and support during investigations or proceedings.
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Will D&O satisfy investor or board governance requirements?
Many investors expect D&O to be in place as part of good governance.
Having cover arranged and documented can assist in funding rounds and board discussions.
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Does D&O cover claims related to cyber or data breaches?
Cyber incidents are usually handled by a dedicated cyber policy, but directors may still face scrutiny
over how cyber risk was managed. D&O can support individuals named in such actions, while cyber
insurance deals with the technical and operational response.
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How much does D&O Insurance for a software company cost?
Premiums depend on company size, financials, sector, claims history and required limits.
For many early-stage and growth software businesses, D&O is relatively cost-effective compared with the protection it offers.
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How do we arrange D&O Insurance for our software business?
Speak to Insure24 with details of your company structure, board, investors and markets.
We’ll discuss your risk profile and put forward tailored D&O options designed for software and technology companies.