Your D&O coverage protects your private belongings. Your E&O protects your organization. Deal with insurance coverage due diligence such as you’d deal with a time period sheet.
Half 1: Desk stakes: Earlier than you evaluate worth, evaluate safety
These 4 questions are non-negotiable. Any insurance coverage supplier you think about ought to go each considered one of them. In the event that they don’t, you’re introducing threat as a substitute of managing it.
1. Who’s issuing my coverage?
The most effective safety comes from a licensed insurance coverage service, an entity registered and controlled by each state wherein it operates, topic to stringent capital and solvency necessities designed to make sure your claims receives a commission. Have a look at the footer of your coverage kind. If it says “Danger Retention Group” anyplace, your coverage just isn’t issued by a licensed service, and your state’s shopper protections might not absolutely apply.
Embroker: Insurance policies issued by Everspan Insurance coverage Firm, a licensed service working in all states, regulated by state departments of insurance coverage.
Based mostly on 2024 statutory filings. Everspan had capital and surplus within the quantity of $125.2 million.
Corgi: Insurance policies issued by Know-how Danger Retention Group, Inc., an Arizona-domiciled RRG that started working January 1, 2026. They describe themselves as a “service” on their web site, however the regulatory document says in any other case.
To acquire regulatory approval in Arizona, the minimal required capital and surplus is barely $500,000.
Confirm it your self: Search the NAIC firm search. Is the entity issuing your coverage listed as a licensed service? Or be at liberty to learn Corgi’s personal (very lengthy) disclaimer web page“
2. What’s the AM Finest score?
AM Finest is the gold commonplace for measuring an insurer’s monetary power. Impartial analysts confirm that carriers will pay their declare obligations. A score of A- (Wonderful) or higher is what most traders, lenders, and enterprise clients require. No score means no unbiased validation that the entity will be there once you want it most.
Embroker: Everspan Group is rated A- (Wonderful) by AM Finest. Reinsurance companions carry scores of A and A+, additional strengthening the claims-paying place.
Corgi: Not rated by AM Finest. No unbiased validation of economic power or claims-paying potential exists for both of their entities.
Confirm it your self: Search AM Finest’s score lookup. Rankings are up to date yearly for full transparency.
3. Who’s backing the danger?
Many insurers share threat with reinsurance corporations. This gives vital benefits: unbiased reinsurers diversify the danger that anyone entity turns into bancrupt, higher-rated companions strengthen the general claims-paying pool, and skilled reinsurers deliver a long time of claims experience. However when the “reinsurer” is an affiliate of the corporate promoting you the coverage, threat isn’t being transferred. It’s being moved from one pocket to a different.
Embroker: Backed by a panel of 12 unbiased, household-name reinsurers rated A or higher by AM Finest, representing tens of billions of {dollars} in mixed policyholder surplus. Danger is distributed throughout counterparties with globally diversified portfolios.
Corgi: Danger shared with Corgi Reinsurance, Inc., an affiliated Arizona captive with the identical administration firm, identical tackle, and identical efficient date. To acquire regulatory approval in Arizona, the minimal required capital and surplus is barely $250,000. No unbiased threat diversification.
Confirm it your self: Ask your supplier whether or not premium is backed by unbiased, rated reinsurers or whether or not threat stays inside a single company household.
4. What’s the claims-paying observe document?
D&O and E&O are long-tail strains, which means claims can arrive three to 5 years after you purchase the coverage. You need an insurer with actual claims expertise and enough surplus to pay even throughout market downturns. This issues particularly for startups: throughout a “startup winter,” claims frequency rises simply as capital turns into scarce. Your insurer’s surplus construction wants to resist precisely that state of affairs.
Embroker: Over 1,300 claims dealt with since inception. Embroker operates a licensed in-house claims adjusting entity with panel counsel at main legislation corporations. Reinsurance companions deliver tens of hundreds extra claims throughout world portfolios.
Corgi: Insurance coverage operations started January 1, 2026. Minimal claims historical past. Corgi doesn’t presently function a licensed claims adjusting entity. Their latest fundraise should cowl each operations and declare funds, and will not be enough in a market downturn.
Confirm it your self: Ask what number of claims your insurer has dealt with, and the way a lot policyholder surplus stands behind your coverage.
Half 2: What units us aside: Dealer vs. service
When you’ve confirmed the desk stakes, the subsequent query is structural: would you like a single firm’s product, or entry to the broader insurance coverage market? The mannequin shapes every part from protection flexibility to what occurs once you file a declare.
Your dealer has a fiduciary responsibility to you. A service doesn’t.
That is the only most essential structural distinction. A dealer is legally obligated to behave in your greatest curiosity, discovering you the appropriate protection at a good worth. A service’s obligation is to its personal steadiness sheet. When the identical entity underwrites your coverage and evaluates your declare, there may be an inherent battle of curiosity.
Embroker (dealer mannequin):
- Fiduciary responsibility to behave in your curiosity
- Advocates for you throughout claims disputes
- No monetary curiosity in denying your declare
- Helps interpret protection and navigate complexity
- Can transfer your small business if the service underperforms
Corgi (single-carrier mannequin):
- No fiduciary obligation to the policyholder
- Evaluates and pays its personal claims
- Monetary curiosity within the end result of each declare
- No unbiased social gathering advocating in your behalf
- Switching requires beginning over fully
Why this issues for startups: A D&O declare from a failed funding spherical or securities lawsuit can take years and value hundreds of thousands in protection alone. Having an unbiased advocate with a authorized responsibility to signify your pursuits, not the service’s, will be the distinction between a paid declare and a protection dispute.
Protection: one possibility vs. the appropriate possibility
Corgi sells pre-packaged, proprietary protection from a single entity. Embroker helps you choose probably the most acceptable protection from the broader market and customise it as your small business evolves.
Embroker (dealer mannequin):
- Examine protection throughout a number of carriers
- Customise D&O, E&O, cyber, and EPLI independently
- Alter your program as you scale
- Pricing knowledgeable by market competitors
Corgi (single-carrier mannequin):
- Pre-packaged protection, restricted customization
- One underwriting strategy
- One pricing construction
- No potential to match alternate options
Flexibility as your organization scales
Startups change quickly. Insurance coverage necessities turn into extra advanced after funding occasions, new hires, product launches, and worldwide enlargement.
Embroker (dealer mannequin):
- Protection adjustable throughout a number of insurers
- Insurance policies upgraded or restructured over time
- Not locked right into a single supplier
- Dealer manages transitions seamlessly
Corgi (single-carrier mannequin):
- Protection tied to 1 supplier’s providing
- Changes restricted as threat evolves
- Switching prices enhance over time
- No exterior market leverage on pricing
Which mannequin suits?
Corgi may go if… you’re comfy with a single, unrated insurance coverage supplier.
Embroker is the higher match if…
- You’re venture-backed or planning to scale
- You need entry to a number of rated insurers
- You desire a fiduciary advocate throughout claims
- You want flexibility as your threat evolves
- Your traders require A-rated protection
Insurance coverage ought to defend you, not introduce new threat. Embroker’s program is backed by independently rated, household-name reinsurers with a long time of claims-paying historical past.
Entity information sourced from public NAIC SBS filings (retrieved February 2026). NAIC CoCode 17763 (Know-how Danger Retention Group, Inc.) and NAIC CoCode 17842 (Corgi Reinsurance, Inc.) are each Arizona-domiciled, managed by Dane Administration, LLC, efficient 01/01/2026. Corgi coverage kind CORG-TECH-0100 footer identifies Know-how Danger Retention Group, Inc. because the issuing entity. Embroker’s program is underwritten by Everspan Insurance coverage Firm. Reinsurance panel composition displays present treaty preparations and is topic to alter. AM Finest scores are present as of the newest evaluation interval. This web page is supplied for academic functions. Seek the advice of your authorized and insurance coverage advisors for steerage particular to your scenario.
