Directors Insurance for NZ Startups
NZ startup founders increasingly need D&O insurance before closing their first investment round. Investors want assurance that their capital is protected, and the FMA scrutinises capital-raising activities closely. Get covered before you raise.
Why Investors Require D&O Insurance
Angel investors and VCs increasingly require D&O insurance as a condition of investment. It protects their capital by ensuring that a claim against founders doesn't derail the company. It also demonstrates governance maturity — a signal that founders take their responsibilities seriously.
FMA and Capital-Raising Risks
The Financial Markets Conduct Act imposes strict obligations on companies raising capital in NZ. Errors in disclosure documents, incorrect financial projections, or misleading statements can expose founders to FMA action. D&O insurance covers the legal cost of responding to FMA investigations.
How Much Does Startup D&O Cost?
For a typical NZ startup pre-Series A, D&O insurance costs $800–$2,000/year. This is a small cost relative to the protection it provides — and is often a closing condition for your investment round.