The Cost of the D&O Claim

It’s strange that 1 in 4 private companies who responded to the survey have had a D&O claim, yet so many private companies say they did not need the coverage.  That is a really big disconnect of perception to reality.  Fortunately, they decided to purchase the coverage after previously not doing so, BEFORE they had their claims.

 

The average reported loss was $399,394 in 2017, which is an almost 10% increase from the prior year.  So just who is/are bring these claims?

 

Customer

 

Sues the company and/or its directors or officers for any reason other than physical injury, product failure, or impairment.

 

Competitor

 

Sues the company and/or its directors or officers.

 

Partner/Shareholder

 

Sues the company and/or its directors or officers.

 

Vendor/Supplier

 

Sues the company and/or its directors or officers.

 

Government Agency

 

Sues or fines the company and/or its directors or officers

 

 

D&O competition has never been so fierce, and premiums so competitive.  A renewal that has a flat premium for 3 or more years is overpriced and should be marketed to US Pro for more competitive terms.

Comments are closed.