Depending on how costly the litigation is, the D&O policy could quickly reduce claim limits

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For example, if the D&O policy had an aggregate limit of $1 million and there were $300,000 in legal fees, there would be only $700,000 left to pay settlements. Tip General liability insurance is another essential business insurance policy. This insurance protects your business if a third party is injured on your premises. How much does D&O insurance cost? Many factors affect the price of a D&O insurance policy, including the insurance carrier’s risk assessment.


When determining the cost of a policy, the insurance c list of saudi arabia cell phone numbers arrier considers these factors: Legal and claims history Company assets Company debts Revenue Industry Obviously, the bigger your organization, the more risk you have and the more your policy will cost. Insurance carriers prefer financially stable companies with a low incidence of lawsuits and claims. Premiums are the lowest for these businesses. As a rule of thumb, you’ll pay approximately $5,000 per year in premiums for every $1 million in coverage.


Small businesses pay, on average, around $140 a month. The more coverage you need, the costlier the policy gets. If you already have important business insurance policies, such as employment practices liability insurance or professional liability insurance, check with your insurance provider about adding a D&O policy. Mark Fairlie contributed to this article. Did you find this content helpful? Yes No Share Article: What Is Fiduciary Liability Insurance? Fiduciary liability insurance protects businesses from mismanagement claims.