Here’s what you need to know about the types of directors & officers liability coverage and what it will cost you.
Directors & Officers liability insurance, also known as D&O insurance, is essential if you want to protect your board and your overall business. We’ve talked about the different kinds of protection it offers before, but we want to take a closer look today at the cost. Let’s explore how much your business needs to be prepared to cover its board’s liability.
Like all kinds of business insurance, D&O policies’ price depends on your business’s unique risks. The greater the risk an insurer takes on with your business, the more they’re going to pass that risk along to you in the form of higher premiums. That being said, a recent report from Advisen can help give us a ballpark range. They say that for businesses with revenues up to $50 million, director & officer coverage ranges somewhere between $5,000 and $10,000. Again, though, your premiums could be lower or higher than that range due to your particular type of work, board members, and implemented loss control strategies.
If you’re a smaller business, and this feels like it might not fit your budget, don’t worry! You can purchase a combination policy to bring down your costs. In the same way bundling your home, auto, and life policies together can help you save on personal insurance, you can group your liability coverage. Some insurers can craft a combination policy, offering your D&O coverage plus employment practices liability coverage to give your business greater protection at a smaller cost.
Of course, at the end of the day, the amount you’ll pay for directors & officers liability insurance depends on your unique business and your unique board. To get a quote for your coverage, contact the experts NorthStar Risk Management & Insurance Services, Inc. in Walnut Creek, California. We can help tailor a policy to protect your specific exposures and your bottom line.