To buy, renew, reword midterm, or trigger directors and officers insurance: contact us. Our team is independent of any insurance broker or lobbyist and can contractually guarantee the lowest cost for existing or tailored coverage.
DeshCap is ranked online #1 for Liability Risk worldwide. D&O Risk is a sub-category of Liability Risk.
Directors and Officers Insurance Brokers
There are hundreds of thousands of Directors and Officers insurance brokers, it is important to select the right ones alongside independent insurance consultants who would reword and trigger the D&O policy language on your behalf to minimize cost, while maximizing compliance and enhancing operational protection.
In general, Directors and Officers insurance brokers are licensed to provide quotes on behalf of insurers that promise to protect corporate executives and board members from personal losses due to legal actions arising from their managerial decisions. In the United States, prominent D&O insurance brokers include Marsh, Aon, and Willis Towers Watson. In Canada, notable firms are HUB International, BrokerLink, and BMS Canada Risk Services Ltd. Australian companies offering D&O insurance brokerage services include Aon Australia, Marsh Australia, and Gallagher Australia. In the United Kingdom, leading brokers are Miller Insurance, Howden Group, and Consilium. These brokers leverage their insurer network to provide D&O insurance solutions.
Negotiating with a D&O Insurance Broker
While there are many D&O insurance brokers out there, it is important to have several compete for your business through an insurance broker RFP.
It is also important to be equipped with strong D&O analytics in order to effectively negotiate with any D&O Insurance Broker and not be at an information disadvantage. You can use our D&O Cost Calculator for basic guidance. Contact our team for analytics that would equip you for best results with any D&O Insurance Broker or to help you select the right D&O broker.
Directors and Officers Insurance Benefits
Directors and Officers (D&O) insurance offers essential protection for executives against claims arising from decisions made while managing a company. Key benefits include coverage for legal defense costs, settlements, and judgments resulting from lawsuits alleging mismanagement, breach of fiduciary duty, or regulatory noncompliance. This type of insurance not only safeguards the personal assets of directors and officers but also helps attract top leadership talent, as candidates value protection from financial risks. With D & O insurance, businesses ensure continuity and confidence in their leadership teams, minimizing the impact of costly legal disputes. Whether you operate a public company, private business, or nonprofit, D & O insurance is a crucial safeguard in today’s complex regulatory and litigation environment.
Entity Benefit of Directors and Officers Insurance
In addition to the above, the insurance can also protect the company itself in case of liability risk against it. It is recommended to buy D & O insurance when a company is first formed and then reviewed and updated as the company grows and evolves. Public companies are typically required to have D & O insurance as part of their liability protection. Note that some lenders view D & O Insurance limits as part of a company's balance sheet.
Directors and Officers Insurance Claims
There are various loss scenarios that can be claimed under a D & O insurance policy. D&O claims can be related to mismanagement, regulatory non-compliance, or fiduciary breaches. They can include allegations of wrongful acts, such as breaches of duty, fraud, or discrimination. It is important that the policy is triggered clinically by experts independent of brokers or insurers and who under the insurance claiming process.
Exclusions of Directors and Officers Insurance
There are certain things that are typically not covered by D&O insurance, such as:
- Illegal or fraudulent activities
- Bodily injury or property damage
- Liabilities arising from employment practices or ERISA (Employee Retirement Income Security Act) claims
- Liabilities arising from environmental or pollution incidents
- Liabilities arising from the company's financial performance or financial products
- Liabilities arising from the company's pension plan
- Fine and penalties imposed by government authorities
It's important to note that the specific exclusions and limitations of D&O insurance can vary depending on the policy and the insurance company. Therefore, it is important to review and understand the terms of the policy before purchasing.