The D&O Market: Evolving Risks & Climbing Rates


When a company is accused of wrongful acts, it can be sued for professional or general liability. In addition, the corporate directors and officers can be personally sued for failing to prevent those wrongful acts through management best practices.

That’s why it’s important to have directors and officers (D&O) liability insurance. It protects company leaders and their spouses if they are personally sued for something that happens at their company.

With so much going on in world, D&O liability protection is more important than ever – and more expensive to maintain. Several trends are pushing claims and rates upward.

Commercial Insurance Rates Are Increasing Across the Board

Rising D&O insurance rates are part of a bigger trend. According to Insurance Journal, the Global Insurance Market Index showed that average global commercial insurance prices were up 14 percent in the first quarter of 2020. Workers’ compensation prices were a rare exception, going down 1 percent, but most lines were up. In the U.S., D&O pricing was up 44 percent.

It should be noted that these price hikes started long before the coronavirus was news, and the pandemic was not considered a factor in these increases – although it may be a factor in future increases.

Awards and Settlements Are Up

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