The Founder’s Insurance Checklist

Your D&O policy protects your personal assets. Your E&O protects your company. Treat insurance due diligence like you’d treat a term sheet.

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Part 1: Table stakes: Before you compare price, compare protection

These four questions are non-negotiable. Any insurance provider you consider should pass every one of them. If they don’t, you’re introducing risk instead of managing it.

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1. Who is issuing my policy?

The best protection comes from a licensed insurance carrier, an entity registered and regulated by every state in which it operates, subject to stringent capital and solvency requirements designed to ensure your claims get paid. Look at the footer of your policy form. If it says “Risk Retention Group” anywhere, your policy is not issued by a licensed carrier, and your state’s consumer protections may not fully apply.

Embroker: Policies issued by Everspan Insurance Company, a licensed carrier operating in all states, regulated by state departments of insurance.

Based on 2024 statutory filings. Everspan had capital and surplus in the amount of $125.2 million.

Corgi: Policies issued by Technology Risk Retention Group, Inc., an Arizona-domiciled RRG that began operating January 1, 2026. They describe themselves as a “carrier” on their website, but the regulatory record says otherwise.

To obtain regulatory approval in Arizona, the minimum required capital and surplus is only $500,000.

Verify it yourself: Search the NAIC company search. Is the entity issuing your policy listed as a licensed carrier? Or feel free to read Corgi’s own (very long) disclaimer page“

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2. What is the AM Best rating?

AM Best is the gold standard for measuring an insurer’s financial strength. Independent analysts verify that carriers can pay their claim obligations. A rating of A- (Excellent) or better is what most investors, lenders, and enterprise customers require. No rating means no independent validation that the entity can be there when you need it most.

Embroker: Everspan Group is rated A- (Excellent) by AM Best. Reinsurance partners carry ratings of A and A+, further strengthening the claims-paying position.

Corgi: Not rated by AM Best. No independent validation of financial strength or claims-paying ability exists for either of their entities.

Verify it yourself: Search AM Best’s rating lookup. Ratings are updated annually for full transparency.

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3. Who is backing the risk?

Many insurers share risk with reinsurance companies. This provides critical advantages: independent reinsurers diversify the risk that any one entity becomes insolvent, higher-rated partners strengthen the overall claims-paying pool, and experienced reinsurers bring decades of claims expertise. But when the “reinsurer” is an affiliate of the company selling you the policy, risk isn’t being transferred. It’s being moved from one pocket to another.

Embroker: Backed by a panel of 12 independent, household-name reinsurers rated A or better by AM Best, representing tens of billions of dollars in combined policyholder surplus. Risk is distributed across counterparties with globally diversified portfolios.

Corgi: Risk shared with Corgi Reinsurance, Inc., an affiliated Arizona captive with the same management company, same address, and same effective date. To obtain regulatory approval in Arizona, the minimum required capital and surplus is only $250,000. No independent risk diversification.

Verify it yourself: Ask your provider whether premium is backed by independent, rated reinsurers or whether risk stays within a single corporate family.

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4. What is the claims-paying track record?

D&O and E&O are long-tail lines, meaning claims can arrive three to five years after you buy the policy. You want an insurer with real claims experience and sufficient surplus to pay even during market downturns. This matters especially for startups: during a “startup winter,” claims frequency rises just as capital becomes scarce. Your insurer’s surplus structure needs to withstand exactly that scenario.

Embroker: Over 1,300 claims handled since inception. Embroker operates a licensed in-house claims adjusting entity with panel counsel at leading law firms. Reinsurance partners bring tens of thousands more claims across global portfolios.

Corgi: Insurance operations began January 1, 2026. Minimal claims history. Corgi does not currently operate a licensed claims adjusting entity. Their recent fundraise must cover both operations and claim payments, and may not be sufficient in a market downturn.

Verify it yourself: Ask how many claims your insurer has handled, and how much policyholder surplus stands behind your policy.

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Part 2: What sets us apart: Broker vs. carrier

Once you’ve confirmed the table stakes, the next question is structural: do you want a single company’s product, or access to the broader insurance market? The model shapes everything from coverage flexibility to what happens when you file a claim.

Your broker has a fiduciary duty to you. A carrier doesn’t.

This is the single most important structural difference. A broker is legally obligated to act in your best interest, finding you the right coverage at a fair price. A carrier’s obligation is to its own balance sheet. When the same entity underwrites your policy and evaluates your claim, there is an inherent conflict of interest.

Embroker (broker model):

• Fiduciary duty to act in your interest
• Advocates for you during claims disputes
• No financial interest in denying your claim
• Helps interpret coverage and navigate complexity
• Can move your business if the carrier underperforms

Corgi (single-carrier model):

• No fiduciary obligation to the policyholder
• Evaluates and pays its own claims
• Financial interest in the outcome of every claim
• No independent party advocating on your behalf
• Switching requires starting over entirely

Why this matters for startups: A D&O claim from a failed funding round or securities lawsuit can take years and cost millions in defense alone. Having an independent advocate with a legal duty to represent your interests, not the carrier’s, can be the difference between a paid claim and a coverage dispute.

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Coverage: one option vs. the right option

Corgi sells pre-packaged, proprietary coverage from a single entity. Embroker helps you select the most appropriate coverage from the broader market and customize it as your business evolves.

Embroker (broker model):

• Compare coverage across multiple carriers
• Customize D&O, E&O, cyber, and EPLI independently
• Adjust your program as you scale
• Pricing informed by market competition

Corgi (single-carrier model):

• Pre-packaged coverage, limited customization
• One underwriting approach
• One pricing structure
• No ability to compare alternatives

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Flexibility as your company scales

Startups change rapidly. Insurance requirements become more complex after funding events, new hires, product launches, and international expansion.

Embroker (broker model):

• Coverage adjustable across multiple insurers
• Policies upgraded or restructured over time
• Not locked into a single provider
• Broker manages transitions seamlessly

Corgi (single-carrier model):

• Coverage tied to one provider’s offering
• Adjustments limited as risk evolves
• Switching costs increase over time
• No external market leverage on pricing

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Which model fits?

Corgi may work if… you’re comfortable with a single, unrated insurance provider.

Embroker is the better fit if…

• You’re venture-backed or planning to scale
• You want access to multiple rated insurers
• You want a fiduciary advocate during claims
• You need flexibility as your risk evolves
• Your investors require A-rated coverage

Insurance should protect you, not introduce new risk. Embroker’s program is backed by independently rated, household-name reinsurers with decades of claims-paying history.

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Entity data sourced from public NAIC SBS filings (retrieved February 2026). NAIC CoCode 17763 (Technology Risk Retention Group, Inc.) and NAIC CoCode 17842 (Corgi Reinsurance, Inc.) are both Arizona-domiciled, managed by Dane Management, LLC, effective 01/01/2026. Corgi policy form CORG-TECH-0100 footer identifies Technology Risk Retention Group, Inc. as the issuing entity. Embroker’s program is underwritten through Everspan Insurance Company. Reinsurance panel composition reflects current treaty arrangements and is subject to change. AM Best ratings are current as of the most recent review period. This page is provided for educational purposes. Consult your legal and insurance advisors for guidance specific to your situation.