The risk to senior management is similar for both private and public executives. Therefore, it is encouraged for both private and public companies to secure Texas directors and officers insurance to protect company leaders and the business.
In most cases private and venture investors mandate that companies buy D&O insurance either before closing a round of financing or within some specified time after closing. The intent being if something serious and unplanned happens a proper D&O policy will support the company leaders as well as the board.
There are some differences between D&O policies for private and public companies. The biggest difference is that public policies cover Securities Class Actions brought by investors. As such, D&O insurance for a public company will be more expensive, which is understandable as there are simply more stakeholders involved.