D&O may cover advisory-board members, but do not assume it does. Before offering that protection in a SaaS advisory agreement, verify that the insured definition or an endorsement includes the role and that the claim fits the covered activities. Separately review hands-on technology work, exclusions and defense arrangements; an adviser’s title or equity grant is not a coverage determination.
Find advisory-board members in the insured definition
Some D&O products expressly address advisory-board members. Chubb’s U.S. ForeFront Portfolio 3.0 D&O product page includes members of advisory boards in its published insured definition. That is evidence about this product, not a rule for every D&O policy or confirmation that any arrangement called an advisory board qualifies.
Locate the definition of insured or insured person and any endorsements that change it. Ask whether the proposed appointments fit the existing language, whether an endorsement is needed and when any change would become effective.
If the wording does not clearly address the advisory role, leave the coverage question unresolved rather than assuming inclusion or exclusion. Request the proposed policy wording and applicable endorsements before promising insurance protection in an advisory agreement.
Sources: Chubb: ForeFront Portfolio 3.0 Directors & Officers and Entity Liability Insurance
Match the appointment to the entity and actual duties
Chubb’s U.S. ForeFront Portfolio 3.0 overview discusses exposure arising from management decisions. A useful way to apply that framing to an advisory appointment is to describe what each adviser will actually do, rather than relying only on a title.
Prepare a one-page role matrix identifying the appointing entity, appointment dates, responsibilities and any separate service engagements. Distinguish an advisory role for the SaaS parent company from work for a subsidiary, a customer or the adviser’s own consulting business.
Ask the broker or insurer to identify the policy provisions supporting the proposed protection. Separately have the appointment and any indemnification or insurance promises reviewed by counsel. Keep those contractual questions distinct from the question of what the insurance wording covers.
Sources: Chubb: ForeFront Portfolio 3.0 Directors & Officers and Entity Liability Insurance
Separate strategic advice from technology-service work
Travelers describes Tech E&O as addressing allegations that errors, omissions or negligent acts involving a company’s technology products or services caused damage. That presents a different coverage question from management-related protection.
An adviser might attend strategy meetings and also build integrations, assess a customer’s architecture or perform implementation work. Do not assume those activities receive identical treatment because the same person performs them.
For separate technical work, inspect any D&O professional-services exclusion and exceptions, the Tech E&O insured definition and the description of covered services. Identify whose contract governs the work and which business is delivering it. The adviser’s separate consulting business may require its own review; inclusion of an individual in one role does not settle every other role.
The practical goal is a role-by-role coverage assessment, not a blanket statement that the adviser is covered.
Sources: Chubb: ForeFront Portfolio 3.0 Directors & Officers and Entity Liability Insurance · Travelers: 4 Technology Errors and Omissions Insurance Risks
Check exclusions, claim definitions and defense arrangements
Insured status is only the first question. Chubb’s published product highlights describe an insured-versus-insured exclusion with specified exceptions and include written demands among claim categories. Examine the actual wording if an adviser is also an equity holder or a dispute could involve the company and the adviser. Do not assume a particular exception applies.
Beazley’s U.S. private-company D&O page lists duty-to-defend and pay-on-behalf choices, along with flexibility for pre-approved counsel. These are examples of that product’s features, not universal arrangements or confirmation that Atlas can offer them.
Translate the proposed policy into practical claims-handling questions before describing the protection in an agreement.
- If the company and adviser are both named, how are defense counsel selected and approved?
- Are defense expenses within the applicable limit, and which parties or coverage parts share that limit?
- Which retention applies, and what consent is needed before incurring defense expenses or agreeing to a settlement?
- What communications qualify as claims, who must report them and what reporting deadlines apply?
Sources: Chubb: ForeFront Portfolio 3.0 Directors & Officers and Entity Liability Insurance · Beazley: D&O — Private Companies
Hypothetical: one adviser, two different disputes
Hypothetical example: a SaaS company appoints a product strategist to its advisory board. An investor later sends a written demand alleging that the adviser and founders misrepresented the company’s business plans. Separately, a customer alleges that an integration built by the same adviser caused financial loss.
For the investor demand, review insured status, the alleged management activities, the claimant and relevant exclusions. For the integration dispute, separately review the technology-service engagement and applicable insured definitions. Neither outcome follows from the advisory-board title alone.
This example illustrates why the appointment agreement and any separate statement of work should be considered together during a coverage review. It does not predict coverage for either dispute.
Sources: Chubb: ForeFront Portfolio 3.0 Directors & Officers and Entity Liability Insurance · Travelers: 4 Technology Errors and Omissions Insurance Risks
Prepare a focused review before signing
Use the checklist below before issuing advisory agreements or renewing D&O around new appointments. Resolve whether the role is included, whether the intended activities fit and how a claim would be handled.
For a focused quote request to Atlas Risk Partners, summarize the advisory-board structure, appointment timing and any separate technology services. Ask for wording that addresses that arrangement rather than simply requesting a policy labeled D&O.
Availability varies by carrier, state and risk. This is general education, not an individualized recommendation. It does not bind or establish coverage; policy wording controls.
Sources: Chubb: ForeFront Portfolio 3.0 Directors & Officers and Entity Liability Insurance · Beazley: D&O — Private Companies · Travelers: 4 Technology Errors and Omissions Insurance Risks
Your preparation checklist
- Prepare a roster of advisory roles, appointing entities and proposed appointment dates.
- Gather draft advisory agreements and descriptions of any separate paid technology-service work.
- Locate the D&O declarations, insured definitions, applicable endorsements and relevant exclusions.
- Ask the broker or insurer to identify the exact wording addressing advisory-board members and their intended duties.
- Confirm whether an endorsement is needed and when any coverage change becomes effective.
- Record applicable retentions, limits, defense-cost treatment and counsel-approval requirements.
- Identify who will report demands or other claims and record the policy’s reporting deadlines.
- Align any insurance promise in the advisory agreement with verified coverage wording before signing.
Sources and editorial approach
Atlas publishes practical insurance education using public regulatory and insurer materials. Insurer examples describe their own products and do not establish Atlas market access. Your policy and endorsements determine actual coverage. This article is general information; it does not bind coverage or replace advice about your particular business.
- Chubb: ForeFront Portfolio 3.0 Directors & Officers and Entity Liability Insurance
U.S. product-specific example addressing management-decision exposure and listing advisory-board members in its insured definition, written-demand claim categories and insured-versus-insured exclusion exceptions. Not evidence of another policy’s coverage or Atlas carrier access.
- Beazley: D&O — Private Companies
U.S. product overview listing defense-arrangement choices and counsel flexibility. Used as an example of terms to inspect, not a promise of availability through Atlas.
- Travelers: 4 Technology Errors and Omissions Insurance Risks
Insurer education describing Tech E&O exposure from alleged errors involving technology products or services. Supports separately evaluating an adviser’s hands-on technical work.
Have a correction or a question? Contact Atlas.
