Founder Liability
Employment Practices Liability Insurance for First Hires
Protect your first hire from employment claims that cost $75,000 to defend even when you win.
Everett Fairweather
Senior Writer · · 10 min read
Protect your first hire from employment claims that cost $75,000 to defend even when you win.
Incorporation alone won't shield your personal assets from liability.
Personal liability at the pre-revenue stage can exceed founders' lifetime savings.
Being listed on a policy isn't the same as being covered by it.
Understand when coverage kicks in to avoid costly gaps.
A bundled policy cuts insurance costs but leaves startups vulnerable to industry-specific gaps.
Read your insurance obligations before legal review to avoid last-minute deal delays.
Outside directors trigger real liability exposure and require proper D&O coverage before they join.