Litigation is becoming a more frequent occurrence, especially in a high-risk industry such as psychedelic medicine. Directors and Officers can be held liable for a variety of reasons, including:​

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• Failure to comply with regulations or laws

• Pollution and other regulatory claims

• Employment practices and HR issues

• Theft of intellectual property

• Lack of corporate governance​

• Shareholder suits over company or stock performance

• Breach of fiduciary duty resulting in financial loss/bankruptcy

• Misrepresentation of company assets

• Misuse of company funds

• Fraud

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Directors and Officers (D&O) Liability insurance protects your company's directors and officers, as well as their spouses and estates, from being personally liable in the event you are sued by investors, employees, vendors, competitors, customers, or other parties, for actual or alleged wrongful acts in managing the company. In the event of litigation, your D&O policy will cover legal fees, fines, settlements, and other expensive costs. Many officers and directors require a company to have D&O coverage, often times with excess limits.

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If you are looking to secure venture capital or funding from investors, you need D&O Liability Insurance as a form of protection. In fact, it is often required if you want to attract and retain qualified directors.