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Directors and officers Insurance (also called D&O insurance) protects the directors or officers at your private company, a public company, or non-profit organization if they are sued for something that they did in their role in your organization. This type of insurance protects them from personal liability if a customer, investor, employee, competitor, or other stakeholder brings a lawsuit alleging liability or harm. Directors and officers insurance covers lawyer costs, settlements, judgments, and other liability costs related to a claim or lawsuit.
The best directors and officers insurance policy covers your organization with specialized coverage that recognizes your organization’s unique risks at a reasonable rate. This roundup will help readers pick the best directors and officers insurance policy for their business.
Best Overall : Travelers
Why we chose it: Travelers' directors and officers insurance provides comprehensive policy and coverage options for all industries, whether a private company, public company, non-profit, or a financial and insurance company.
Substantial coverage options
Good customer service reviews
Covers public, private, financial, and non-profit companies
Premiums vary significantly depending on your business/industry
Cannot get an online quote
Travelers D&O coverage protects directors against liability for things like defense costs, settlements, judgments, and other costs associated with allegations or lawsuits of wrongful acts.
Policy costs, fees, and deductions vary heavily depending on the type and size of your business and the type of policy you choose, so you will need to contact an agent for a quote and specific details, something that you can do easily online. You can then get in contact with your personal insurance agent with policy questions or renewals.
Travelers has been widely recognized by rating agencies and customer reviews alike for being good at processing claims. Filing a claim with Travelers is simple to do online or by phone; you can call them 24 hours a day, 365 days a year to get a quote or file a claim.
A company that’s been in business since 1853, Travelers is a name to trust in business insurance. It’s currently rated by AM Best as A++ in the category of financial strength and claims-paying.
Best for Small Businesses : Hub International
Why We Chose It: Hub International provides a comprehensive list of affordable coverage options for D&O insurance aimed at protecting small businesses with the ability to tailor their coverage.
Tailored D&O insurance plans
Hands-on help from a broker
No online application
Pricing estimates not available upfront
Hub International is a leading insurance broker that works with several insurers to provide many different insurance products to individuals and businesses. With Hub International’s D&O insurance, you can choose from options like personal and business liability and antitrust and unfair trade coverage.
The costs of your policy depend on how much coverage you need, what kind of coverage you chose, and your business size. To apply for coverage and get a quote, you just fill out a form on their website and a HUB broker reaches out to help you get a policy.
To make a claim, you contact Hub International via a form on their website, and a Hub Risk Advisor contacts you directly. Note that since Hub International is an insurance broker and does not directly sell insurance, you will also need to contact the underwriter of your policy to process your claims.
Best for Nonprofits : Affinity Nonprofits
Why We Chose It: Affinity Nonprofits is best for nonprofits because it provides insurance policy options specifically tailored to nonprofits and, as a subsidiary of Aon Insurance, has the power and pricing of a leading global insurer.
Tailored products allow nonprofits to manage their risks
Over 100 types of nonprofits are eligible
Underwritten by Aon
Limited hours for customer service
Limited hours for claims
Affinity Nonprofits insures over 100 types of nonprofit organizations including social service organizations, community associations, clubs, healthcare services, and museums.
Its customized coverage allows you to get exactly the type of protection you need for your nonprofit organization. For example, they provide provenance liability insurance for museums to protect directors in the event of a lawsuit or challenge to the ownership records on a work of art. They also provide third-party discrimination protection in case directors are sued based on membership discrimination.
To get a policy, you have to schedule a consultation or call from Monday to Friday, 8:30 a.m. to 5:30 p.m. ET.
Aon is a top global insurer with an AM Best rating of A in financial strength and claims-paying. Aon works in over 120 countries and their Affinity group offers customized insurance products for specific types of businesses such as nonprofits.
Best for High Policy Limits : The Hartford
Why We Chose It: The Hartford offers D&O insurance in increments of $1 million with no stated limit.
No policy limits
Has good customer service reviews
Covers public, private, and non-profit companies
Premiums vary significantly depending on your business/industry
Their online quote system doesn’t give you D&O quotes
Does not provide the insurance directly
Available to small and large businesses as well as nonprofits, The Hartford's D&O policy can be purchased as a separate policy or bundled with an existing one. Companies can get three levels of coverage, including "C-side" coverage, which protects the entire company rather than just directors and officers. Policy limits include $1 million for second claims against managers and reimbursement for up to $50,000 of expenses related to data breaches. This is among the highest limits we found.
The cost of the policy varies based on factors including industry, size of your organization, the company's revenue and debt, and if you've had any prior legal claims. You won't be able to get a quote online (you'll need to call the company), but you can expect that every $1 million in coverage for a company making $50 million in revenue will cost between $5,000 and $10,000 annually.
If you have a claim to make, you can do so online or via phone and get updates on your claim online from any device. Claims can be made 24 hours a day, 365 days a year.
The Hartford has been in business since 1810 and is widely noted as having good customer service and being a trustworthy company. As of 2020, it had a financial strength rating of A+ from AM Best.
Best Startup D&O : TechInsurance
Why We Chose It: TechInsurance offers a highly specialized insurance policy designed to meet the liability needs of the tech industry and help startups recruit the high-profile board members they need.
D&O coverage designed specifically for tech business risks
Access to proof of insurance at all times
Easy online quotes
Limited customer service hours
Limited claims hours
The cost of TechInsurance’s policies varies significantly from company to company, and it depends on things like the size of the company and its annual revenue. However, TechInsurance claims that their customers pay a median premium of $451 per month or $5,408 per year. The median policy limit is $2 million on their plans and the median deductible is $10,000.
Getting a quote is easy to do online, and you get coverage within a few days. You can also call them between 8 a.m. and 5:30 p.m. CT during business days if you have questions or need to make a claim. TechInsurance allows you to access your proof of insurance 24 hours a day if a potential board member asks for it.
TechInsurance is a product of Insureon, a popular online insurance marketplace that’s designed to deliver small business insurance in partnership with top-rated companies. It is the number-one marketplace for online small business insurance and operates in 50 states.
The D&O insurance options that we reviewed all offered unique insurance policy options specifically designed for the risks and needs of certain fields and industries. Some companies had more robust customer service options than others, making them more convenient and flexible for buying a policy and filing claims.
Before you buy a policy, you should shop around and compare policy prices, coverage options, and deductibles to ensure that you get the right insurance policy for you. However, policies offered by Travelers give your organization flexible coverage no matter what industry you’re in and might be a good place to start when getting quotes.
|Best D&O Insurance|
|Company||Category||Why We Chose it||Standout Feature||Customer Service Hours|
|Travelers||Best Overall||Offers options for many different industries||Has a full suite of other business insurance options||24 hours a day, 365 days a year|
|Hub International||Best for Small Businesses||An insurance broker who will help you find the right policy for you||Offers special policies to cover risks for certain industries||Not stated online|
|Affinity Nonprofits||Best for Nonprofits||Tailored policies for your non-profit organization||Covers your organization’s specific risks||8:30 a.m. to 5:30 p.m. ET|
|The Hartford||Best for High Policy Limits||Allows you to get the amount of coverage you need||Gets you the best policy for your business||24 hours a day, 365 days a year|
|TechInsurance||Best Startup D&O||Focused on ensuring tech companies have the right insurance for their risk||Can access your proof of insurance 24/7||8 a.m. to 5:30 p.m. CT|
What is D&O Insurance?
Directors and officers (D&O) insurance is a type of insurance policy that companies and nonprofits use to cover their leaders should civil or criminal litigation be brought against them for the execution of their fiduciary responsibilities. If they are sued, the D&O coverage will pay for their legal fees and settlements and/or judgments resulting from these lawsuits.
Typically, this coverage includes liability claims and regulatory investigations but not fraud, illegal profits, and criminal activity.
What Is the Difference Between D&O Insurance and E&O Insurance?
D&O insurance covers the individual directors and officers of a company or nonprofit from personal liability if they are sued for their involvement in that company or organization's business.
Errors and omissions (E&O) insurance, or professional liability insurance, covers the entity from lawsuits for professional malpractice and other alleged malfeasance committed by those working for the business.
When Does a Business Need D&O Insurance?
All businesses and nonprofits that have directors and officers should have D&O insurance to protect those executives from personal liability related to the execution of their fiduciary responsibilities. This insurance also helps businesses and organizations recruit and retain the best directors and officers.
We researched around 10 companies that offer D&O insurance looking closely at which companies offered policies aimed at companies or organizations that frequently purchase directors and officers insurance. We then narrowed down our choices to the best options for each kind of business. When comparing D&O insurance, we took into account things like the types of coverage offered, whether it was designed for the specific risks of each industry, the ease of taking out a policy, customer service ratings, and a company’s reputation.
All the companies on our list are considered reputable, have good customer reviews, and offer great policy coverage options.