Replies to post #65277 on Colorado Goldfields Inc. (fka CGFI)

[lesgetrich]

However D & O for a public company isnt based solely on assets or income of company. For example if a mining company which has no assets on balance sheet per US accounting rules,a company could still apply for D & O insurance

This is an exception as I pointed out. Startup companies, with no assets or income, will typically be sold a policy with minimum limits, which for most carriers is $1 million. The reason for this is that the carriers don't feel that they can charge enough premium to cover their sales and administrative expenses for a smaller policy.