The LA Startup Insurance Checklist: What Every Founder Misses Before Investors Ask For It
Because nothing kills momentum like a term sheet that stalls over insurance paperwork.
You’ve built your product, raised your first round, and somehow found a way to make AI, wellness, and community all fit into one pitch deck.
You’re feeling good — until your investor’s legal team asks: “Can you send over your D&O policy?”
…and you suddenly realize you don’t have one.
We see this every week in Los Angeles. Brilliant founders blindsided by risk requirements that were never on the radar. The good news? You’re not alone. The better news? It’s fixable.
The Core Coverages Every Early-Stage Startup Needs
Here’s the short list that separates the ready-for-investment from the “call us when you’re compliant” crowd:
Directors & Officers (D&O)
Protects your leadership team and board from lawsuits tied to decisions, fundraising, or mismanagement claims, both real or alleged.
Investor requirement? Always.Errors & Omissions (E&O)
Covers the work you do and the tech you build. If your product fails, breaks, or underperforms, this is your safety net. Your investors will want this because its their money that’s on the line if your company’s product or work causes a lawsuit.Cyber Liability
Covers breaches, ransomware, and that moment your intern clicks on a “free crypto tool” link. Just like E&O, your investors will want to know their funds are helping hire more engineers, expand GTM strategy, or whatever it is you’re spending the funding on, and NOT paying for a lawsuit.Employment Practices Liability (EPL)
Covers harassment, discrimination, and wrongful termination claims, because HR drama happens faster than product-market fit. You don’t need your team’s time and money spent on employment-related lawsuits.
Flags for Needing Insurance
When investors join your board (they’ll want D&O).
When a big customer’s contract mentions indemnity.
When your AI tool gives “creative” answers that cost someone money.
When your headcount hits double digits, and so do your compliance headaches.
The LA Twist
LA startups have their own flavor of exposure:
Media tech? Defamation and IP claims.
AI + entertainment? Deepfake liability and content ownership.
Creator platforms? Privacy, likeness, and FTC rules.
We’re not Silicon Valley; our lawsuits involve influencers and investors.
The Smart Play
Run a quick coverage audit. Find your gaps now, not mid-term sheet.
Document your risk controls. It makes underwriting smoother and cheaper.
Work with a local brokerage. Because nothing beats someone who knows your market and your zip code.
Execurisk was built for founders who move fast, fund fast, and think big. We translate insurance into founder-speak, and keep you investor-ready before investors even ask.
Move fast. Stay covered. Built in LA.
