Author: Priya Cherian Huskins
We're all familiar with unicorns. Now enter the "neolabs".
Neolab1 is an older term now used to describe the latest generation of startups founded to engage in AI-related research. They generally involve uber-elite AI researchers, are pre-revenue and, nevertheless, have raised hundreds of millions of dollars at billion-dollar valuations.
The fundraising by neolabs is unprecedented.
In the first half of 2026 alone, unicorn companies collectively raised more than $345 billion, putting the market on pace for a record year.
In addition, we're still living through the phenomenon of ever-larger numbers of private companies staying private longer, raising larger amounts of capital and operating at a scale once reserved primarily for public companies. According to Crunchbase2, more than 1,700 private unicorns exist globally, representing nearly $10 trillion in combined value.
Private company growth is accelerating at a faster pace, too.
Nearly 30 companies reached unicorn status in less than a year after founding, and more than 45 recently created unicorns are already valued at more than $5 billion3. AI companies are dominating this list.
Growth brings greater risk
As private company valuations and the amount of capital raised increase, expectations from investors and regulators rise as well.
Particularly for neolabs, these can become dizzyingly high perches from which to fall. As the stakes become higher, disputes can quickly become expensive and disruptive for private company directors and officers.
The best defense for directors and officers of private companies is good execution, good process, good lawyers, good diligence and — above all — good disclosures to investors and other relevant stakeholders.
But you can do everything right and still be subject to expensive litigation risk or expensive regulatory enforcement actions.
These high stakes underscore the importance of private company D&O insurance — not just for late-stage startups, but neolabs and other fast-growing private companies as well.
Gallagher's 2026 Guide to Private Company D&O Insurance explains how D&O coverage works, what risks are covered and how companies can think strategically about structuring their insurance as they grow.
What's inside the 2026 Guide
The 2026 Guide to Private Company D&O Insurance walks through the key issues that private companies should understand as they evaluate their risk exposure and insurance strategy.
Topics include:
- The foundations of D&O insurance, including how Side A, Side B and Side C coverage function.
- Key exclusions to negotiate, plus guidance on policy wording that can impact coverage.
- How private companies structure D&O programs and how they bundle D&O with other liability coverages.
- Approaches to benchmarking limits, including how companies should evaluate exposure.
- D&O considerations for companies preparing for an IPO, direct listing, de-SPAC transaction or acquisition.
- What to look for in a specialty D&O broker and why this can materially affect outcomes.
Do I need a human expert for private company D&O insurance?
In the age of AI, it can feel like the easy path is to get advice from your favorite AI answer engine, access an online broker and call it a day. That can be a good start, and it probably works for earlier companies with modest valuations.
However, companies that rely on this path alone miss the sage counsel that an experienced broker can offer. Deep claims expertise is particularly important at a time when exuberance and optimism are pushing valuations ever higher in the near term.
You aren't buying D&O insurance for show; you're buying it in case an unexpected event leads to D&O claims.
That's why it's critical to work with a D&O insurance expert who can walk you through your particular risk profile, advise you on your potential sources of claims, provide you with appropriate limits benchmarking and ultimately create a D&O insurance program that will respond if called upon.
Published July 2026
