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.
USPro
