How Much Does D&O Insurance Cost?
If you were to contact your company's insurance agent to add a D&O Insurance policy to the rest of your general business package, that agent would have to examine your business thoroughly to determine just how much insurance coverage you need. The right agent will examine what your business does and also how your D and O act in accordance with your business. Depending on how much revenue your company brings in each month, along with a dozen other factors, your policy could vary widely. The important thing to note, however, is that you should only pay for the policy you need, no more, no less.
The Right D&O Insurance Policy Amount
After going over your company's financials, only then can the agent give you an accurate quote. But make sure you spend the time going over what the coverage entails. How will your Directors and Oofficers be protected? And what will they be protected from? These are the types of questions that are seldom asked of the insurance agent, even though they're very important questions.
The reason most business owners hardly ever ask any questions when they purchase insurance is because talking about insurance is unpleasant business. When you discuss your company's risk, you're essentially talking about future incidents that haven't happened yet. If they ever happen. But this subject must be breached and you should become as knowledgeable as possible about the policy your business carries, because the worst-case-scenario could one day become a reality.
The Bottom Line With D&O Insurance
You still want to know how much you're looking to spend when it comes to securing a D&O Insurance policy. Again, this information is going to come from your insurance provider, and only after extensive study. The agent must calculate all possible risk and that means going over various scenarios in which your Directors and Officers might find themselves in the cross hairs of some serious and expensive litigation.
If your agent gauges correctly, and you are able to secure the right amount of D&O Insurance for your business, you'll find that your Directors and Officers will actually work harder for you. Instead of precariously handling certain accounts because those cases might one day land your Directors and Officers in a court room, the individuals working on behalf of your company will be able to carry on with full confidence, knowing that the policies carried by your company will come to their rescue in case they're ever sued.
You never know what can happen and you never know when your Directors and Officers might be sued due to their actions on behalf of your company or organization. But if you secure the right amount of D&O Insurance, and you make sure your agent looks over your business thoroughly before you purchase a policy, you'll be making the wisest decisions possible.
Just remember that having D&O Insurance won't just protect your company and its officers from litigation, but having the proper policy in place will also attract the best talent in the industry and that's just what your company needs to move ahead of the competition. Call us now for a D&O Insurance quote at 212-352-2912.