Directors and Officers Liability Insurance

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A directors & officers liability insurance policy is one that takes care of the financial liabilities suffered by the organisation’s directors and its officers. Such liabilities arise when the managerial employees of the organisation make some mistakes or commit an oversight on important aspects of the business. In such cases, third parties might suffer a financial loss which is attributable to the directors and officers of the company. If the third parties make a legal claim for their losses, a D & O policy covers them. 

The D & O policy coverage is quite comprehensive in nature. This policy covers the settlements payable to third parties as well as legal and defence costs incurred by the organisation. The organisation can select the level of sum insured and depending on the coverage selected and other factors, the D&O policy premium is determined.

The premium for the D & O policy is fixed by the insurance company. However, your organization can negotiate the price to reduce it. Here are some ways in which organisations can negotiate the best price for your directors & officers liability insurance policy –

1. Choosing the right coverage

It is important for organisations to choose the right D & O policy coverage. If the coverage is insufficient, the company would incur considerable out-of-pocket expenses. On the other hand, if the coverage is too high, there would be unnecessary premium payments. Thus, the company should assess its coverage needs and choose the right coverage for the plan. This would also allow the company to negotiate the premium amount.

2. Choosing extensions wisely

Policy extensions help in enhancing the scope of coverage but they come at an additional cost. When selecting extensions, organisations should be careful. They should understand the need and scope of the available extensions and then choose only those coverages that would be needed. If the insurance company offers them additional extensions, they can negotiate on the extensions needed and drive down the premium.

3. Look for discounts

Organisations can look for the different types of premium discounts offered by insurance companies to reduce the premium cost. They can also negotiate with the insurer to offer them discounts for paying the premium online or for opting for comprehensive coverage. If organisations bargain for premium discounts they can get the best price for the policy.

4. Comparing the policies

There are a lot of insurance companies that offer D & O policy. To get the best price organisations should compare the available plans. Comparing would allow them to find plans that offer the best coverage benefits and charge the lowest premiums. Moreover, when organisations have a quote from multiple insurers, they can negotiate the premium easily to get the best price.

How SecureNow can help?

SecureNow is an online platform that allows organisations to compare the available directors & officers liability insurance policies. You can provide your coverage requirements and SecureNow would give you deeply researched quotes for some of the best plans across insurers. Moreover, SecureNow would also help you by negotiating the best price for the policy.