A director’s and officers’ liability insurance coverage is a must for organizations to protect themselves against financial liabilities brought on by third parties. The policy protects the directors and officers of the company against legal liability suffered due to errors and omissions. Such liabilities can be financially large, and by providing the necessary coverage, a D & O liability insurance policy provides the much-needed financial assistance in case of lawsuits or third-party settlements. So, how to select the insurance company for D&O Policy?
Because of the fact that the D & O policy is necessary, there are many insurance companies that offer specialized plans for organizations. In fact, almost all general insurance companies that provide commercial insurance plans, offer directors and officers liability insurance coverage.
Here’s how you can choose the right insurer for D&O insurance company–
1. Check the coverage offered
A basic D & O liability insurance policy covers third-party settlements and the legal costs incurred on defending against a possible lawsuit. However, to make their D & O policy competitive insurance companies enhance the basic coverage structure. They might offer one or more additional coverage benefits inbuilt under the policy. These help in making the policy comprehensive which is good for your organization and its liabilities.
2. Check the policy extensions
Extensions are additional coverage benefits which can be added to the coverage at an additional premium. Extensions help in customization and also enhance the scope of coverage. So, check the extensions offered by the company as well as the cost of each extension. The ideal company should offer a range of coverage extensions at affordable rates so that you can pick those that you need.
3. Compare the premiums
Premiums are an important factor in picking the right insurance company. The right insurer should charge a low premium without compromising the coverage benefits of the policy.
4. Check the claim settlement ratio
The directors’ and officers’ liability insurance coverage prove beneficial only when there is a claim and the policy handles the claim efficiently. That is why gauging the claim settlement ratio of the insurance company is important. Check the insurer’s claim settlement ratio and also the time taken to settle the D & O claims. An insurer that settles the claims easily and efficiently would be the right choice for the D&O insurance company.
To check different insurance companies against these parameters, you should compare the D&O policy offered by the different insurance companies. Compare the policies on the above-mentioned factors and then pick an insurer that offers the best coverage (both inbuilt and optional) at affordable premium rates and also settles its claims at the earliest.
Additional Read: Who is the right insurer to buy a D&O policy from?
Choosing the right insurer through SecureNow
SecureNow is an online portal that allows you to find the right insurance company for your D & O policy. SecureNow is tied-up with leading insurers of India and allows you the facility of comparing the policies offered by them. You can specify your coverage needs and SecureNow would find the most suitable D & O liability insurance plans. You can also take the help of insurance experts at SecureNow to zero in on the right insurer for your policy.
About The Author
Rajesh
MBA Finance
With a wealth of expertise in the insurance realm, Rajesh is a distinguished writer specializing in articles focusing on directors and officers insurance for SecureNow. Boasting 9 years of experience in the industry, he profoundly understands the complexities surrounding directors and officers liability coverage. Their articles delve into the intricacies of D&O insurance, providing readers with invaluable insights into risk mitigation strategies and policy considerations. Renowned for their comprehensive knowledge and attention to detail, Rajesh is dedicated to delivering informative and engaging content that empowers individuals and businesses to navigate the complexities of insurance with confidence.
