Directors and Officers Liability Insurance

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How do I buy a D&O policy?

The top management of an organisation makes important executive policies and takes decisions to further the growth of the company. These policies, decisions and actions of the managerial employees of the organisation impact third parties like other employees; stakeholders like suppliers, creditors, investors; and even the government. For instance, if due to an erroneous action, decision or judgement, a concerned third party suffers a loss, the directors and officers of the company, as well as the company as a whole, would suffer financial and reputational repercussions. Additionally, directors can be held personally responsible for the organisation’s debts. Thus, to cover protection from such repercussions, a directors and officers liability insurance policy proves useful. Moreover, the policy covers third party liabilities suffered as well as legal costs incurred if there is a lawsuit.

How to buy directors and officers liability policy?

There are two ways to buy a directors and officers liability policy. You can either buy a D&O insurance online or offline. Let’s understand how you can purchase a suitable D & O policy which meets your organisation’s coverage needs under both modes –

Buying D&O insurance offline

The offline mode involves buying the policy through the insurance company or its advisor, broker or agent. You can contact either the insurance company or the insurance broker or advisor for buying the policy. Thereby, they would assess your situation and coverage requirements and provide you with D&O insurance quotes. Consequently, if you find the coverage and the premium that the company offers satisfactory, you can pay the premium and buy the policy, offline. Policy issuance typically takes about 2 weeks in the offline mode.

Buying D&O insurance online

Buying the D&O policy online is the easiest mode. You can visit the insurance company’s website, or the website of an insurance aggregator or broker. Then, you can check the coverage offered by the plan. In certain cases, you would be able to see instant quotes for the features of the plan that you’ve selected. If you find these suitable, you could fill the proposal form and complete your payment online. Then, you will get the policy instantly.

In other cases, you could leave behind your contact information and coverage needs. Eventually, the insurance company or the aggregator would contact you to create a tailor-made policy for your needs. Then, you can pay the premium online and buy the policy instantly.

Paying D&O premiums

You can pay the premium of the policy through different payment modes. Insurance companies accept premiums paid through –

  • Cheque
  • Demand draft
  • NEFT
  • RTGS
  • Credit card
  • Debit card
  • UPI
  • Net banking facility
  • Wallets

Cash is discouraged unless the premium amounts are very small.

Documents required for buying a D&O policy

To buy a directors and officers liability policy you need to provide certain documents. These documents include:

  • The proposal form containing all the financial and business details of the company
  • A breakup of employees. Specific employee information is not needed
  • The consolidated Balance Sheet and Profit & Loss Account of the company of the last year
  • Auditor’s comments on the financial statements
  • Prior history of litigation
  • Any other documents as required by the insurance company

Additional Read: Advantages of buying a D & O policy

How SecureNow can help

To find the best policy for your needs and to buy a D&O policy online you can visit SecureNow. It is an online platform that shows you the quotes of leading insurers for different variants of the policy. Additionally, you can get well researched coverage options based on your needs.

Moreover, at SecureNow you can compare the coverage and the premium to be paid to the insurer. Then, choose the policy that offers the best coverage. The premiums shown and coverages are the most competitive in the market. So, you can fill a simple proposal form, complete your payment and buy the policy online in just a few simple steps to get covered at the earliest. SecureNow also supports you in claims, should those arise.