Directors and Officers Liability Insurance

Should I select a D&O insurer offering lower premium?

A directors and officers liability policy proves to be a valuable addition for an organisation as well as for its key managerial personnel. In the case of third party liabilities, that arise due to errors and omissions committed by the company’s directors and officers, the financial liability can be considerable. 

If the company suffers the financial consequences of its employees’ mistakes, its profitability gets impacted. On the other hand, if the directors and officers suffer the liability themselves, their finances are threatened. That is why a D & O insurance policy proves to be the best solution for the organisation and its directors too.

A directors and officers insurance plan is offered by multiple insurance companies. Each company follows its own pricing policy and so, the D & O quotes are not uniform. When buying this  policy, you can compare the quotes of different insurers to choose the best plan. But is the insurer offering the lowest premium the best choice?

Not always. While the premium plays an important part in the selection of the insurance company, it is not the only thing that you should consider. When comparing insurers, the following features should also be taken into consideration –

  • The coverage being offered
  • The claim settlement ratio of the insurance company 
  • The claim process and turnaround time
  • The policy extensions being offered

These factors, along with the premium should be compared to choose the right insurance company. The company that charges the lowest premium might not always be the best insurance company. It is because of one or more of the following reasons –

  • The policy can compromise on the coverage offered and offer you restricted coverage benefits
  • There might be coverage limitations on the coverage provided
  • The policy might not have the required extensions that you need to ensure complete protection

If there is any compromise with the coverage, you would end up incurring considerable out-of-pocket expenses in case of a claim. In such cases, the purpose of the D & O insurance policy would be defeated and the money that you pay during claims would far outweigh the money that you save on the premium cost.

That is why the insurer with the lowest premium is not always the best bet. Instead, you should choose a company which –

  • Offers the most complete scope of coverage as per your needs under the directors and officers liability policy
  • Has a good claim settlement history and settles your claims in the easiest possible manner
  • Allows a range of policy extensions so that you can customize your coverage as per your needs

Once all these factors are taken into consideration, you should compare the premium quotes and choose an insurer that offers all the above-mentioned benefits and charges a low premium. 

Additional Read: Who is the right insurer to buy D&O policy?

Should I select a D&O insurer offering lower premium? How SecureNow can help?

SecureNow helps you choose the best D & O insurer by allowing you to compare between the leading plans on the basis of their coverage, claim record extensions and premium rates. With SecureNow’s help, you can choose the most suitable directors and officers liability policy that offers an all-inclusive coverage at the best premium rates. You can also customize your policy based on your needs and at the time of claims, SecureNow would give you complete assistance to get your claims settled without hassles.

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