What are the criteria for selection of the best D&O insurance company?
A directors and officers (D&O) insurance policy provides unmatched coverage to organisations and their key personnel against third party liabilities. If the directors and officers of a company commit mistakes or neglect important details, they might suffer a liability claim from third parties. The third parties are likely to have suffered a financial loss due to their actions.
When such a claim arises, directors and officers face a personal financial strain too. At that time, the D&O policy provides the much needed financial security. Moreover, the D&O policy could be a good option for the organization if it wants to attract good directors and executives. The policy provides financial protection to the employees from potential lawsuits.
Thus, buying the best D&O liability insurance coverage has become a necessity for companies. However, with more than two dozen general insurance companies offering a directors insurance policy, it is challenging to choose the right company. Organisations should use the following criteria to select the best insurance company offering a suitable policy.
The coverage offered
The first criterion in shortlisting the best insurance company is to check the coverage offered by the policy. The basic coverage, i.e. Side A, B and C, would be inbuilt under most of the plans. Additionally, you should check the other coverage benefits offered to make the plan comprehensive. Look for policy extensions that might be inbuilt in the plan or offered as additional coverage benefits at additional premiums. Needless to say, the D&O liability insurance coverage offered by the best insurance company should be comprehensive and also suitable for your needs.
One very useful extension is the entity EPLI. If you have this extension, then the insurance will also pay for employment related lawsuits where the company is named. Such lawsuits are common, particularly in the service sector which is people intensive.
The premium charged
After ensuring that the coverage is comprehensive, the next parameter to judge an insurance company is the premium that it charges on the policy. Different insurance companies follow different pricing policies, so, their premiums vary. Check the premium offered by different insurance companies against the scope of coverage under their plans. The best insurance company would be the one that charges the lowest amount of premium without compromising on the coverage benefits. You should also use a broker to negotiate with insurers on your behalf. This brings the cost down.
Additional Read: What drives the cost of D&O policy?
The claim process
The claim process and history of the insurance company is also an important criterion. Check the claim settlement protocol of the insurance company. This check will ensure that your director’s insurance claim is settled easily and quickly, The best insurance company would be the one that settles the D&O claims in the most convenient manner and also provides claim assistance services. Furthermore, the company should also have a good claim settlement record that would be a favourable indication on the claim settlement protocol of the insurer. Claim settlement for D&O is not publicly available so you should ask the insurer for this information and also for examples of claims that they have settled.
These are the important criteria that you should keep in mind while selecting the best insurance company for the D&O policy coverage. To find the best insurance company, a comparison is necessary. Compare the directors liability insurance plans offered by different companies on these parameters and then pick the right company.
Role of SecureNow
SecureNow helps you with a relevant comparison across different insurance companies offering a D&O liability insurance coverage. This can be done as per your needs. SecureNow has tie-ups with leading insurers that offer some of the best D&O policies. You can, therefore, compare the different insurance companies on the afore-mentioned parameters and find the best insurer.
Visit www.securenow.in or call us at 96966 83999 and share your coverage needs. SecureNow will compile the list of insurance companies with the best plans. You can then compare these and find the best insurer for your insurance needs.