8 Reasons to Buy D&O Insurance 1. Attracting New Directors: D&O insurance makes board seats more attractive. 2. Investor Requirements: Some venture capital and private equity firms require that their portfolio companies purchase D&O insurance as a condition of the firm's investment. 3. Emerging Risks: The risk landscape can change rapidly. For example, risks associated with secondary sales platforms for private company stock are fairly new. D&O insurance can help mitigate some of these risks. 4. Regulatory Exposures: Private companies are subject to government regulation. Paying the cost of an attorney to defend an officer or director against a government enforcement action is expensive. Depending on the circumstances, D&O insurance can help with these expenses.