Fintechs operate in a legal gray zone - often regulated like financial institutions, with less protections and precedent.  D&O is essential as regulators shift focus to individual accountability and enforcement actions.

• CFPB, SEC, DOJ, state AGs, and banking regulators are increasingly naming executives personally in investigations.

• D&O coverage ensures legal defense and indemnification when indemnity from the company is unavailable or restricted.

• Side A protection is critical in bankruptcy, board disputes, or if indemnification is withheld.

Venture-backed fintechs face increasing pressure from investors, strategic board members, and auditors to formalize governance. That brings risk and exposure.

• Capital raises, down rounds, and exits all create shareholder liability.

• Governance decisions around data privacy, lending criteria, or compliance failures often trigger personal claims.

• Litigation involving past officers, co-founders, or early investors can leave gaps in protection without extended reporting and proper tail coverage.

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​D&O doesn’t exist in a vacuum - regulatory investigations often trigger overlapping liability across D&O and E&O, especially when the enforcement relates to both product performance and executive oversight.

• URM coordinates D&O and E&O language to avoid gaps and ensure clarity on:

  • Which policy responds first

  • How regulatory subpoenas or demands are handled

  • Avoiding conflicting definitions of “claim,” “loss,” or “wrongful act”

D&O for fintechs is not plug-and-play. The policy must be restructured to fit:

• Your regulatory footprint (e.g., lending licenses, banking partnerships, embedded finance)

• Your investor profile and board makeup

• The types of enforcement actions your company is realistically exposed to.

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