D&O Insurance can protect companies and their directors and officers from an array of claims. And this protection is not merely to pay defense costs and damages. D&O liability insurance companies provide real claims management and risk management expertise.
For instance, in a 2005 study, Chubb found that the average private company D&O claim cost over $400,000 for companies not covered by D&O. But, the average cost was less than $130,000 for companies that were covered under a D&O liability insurance policy! This is despite the fact that a higher percentage of large private companies purchase D&O liability insurance – and the average claim size is larger for larger organizations. So, among equally sized companies, you might see an even larger differential.
With differentials that large, it can be argued that in addition to reducing risk, D&O coverage can actually reduce long-term costs. Thus companies that forgo D&O insurance can be reducing their long-term profitability and increasing their risk.
Furthermore, D&O liability insurance protects the personal assets of the companies directors and officers. Directors and officers are personally exposed to some liability by virtue of the position they hold. The corporate vail that shields investors and employees of companies does not fully extend to directors and officers. So, in some instances, they will be asked to personally pay for claims if their is no insurance coverage in place. Given that that is the case, it is becoming increasingly unlikely that a company can attract and retain qualified directors without having this coverage in place.
D&O liability insurance can be divided into four categories:
- Public for-profit Companies whose shares are traded on a stock exchange
- Financial Institutions
- Private for-profit Companies whose shares are not traded on an exchange
- Non-profit entities
Alta can obtain you quality, affordable coverage for all of these types of entities and their directors and officers. Look no further for your D&O and management professional liability insurance needs. Alta is a California insurance broker specializing in professional liability insurance, including D&O coverage.
In addition to D&O liability insurance, Alta can provide several related management liability insurance products, including employment practices liability insurance, fiduciary liability insurance, crime insurance, cyber-risk insurance, and intellectual property insurance. Some of these can be applied for on the same application.
Contact us today to obtain a quote and coverage options. Obtaining a quote is relatively easy. You complete an application, we submit it to multiple companies, and then you can compare price and coverage and select the proposal you like the best. And we are there every step of the way to answer questions.
Feel free to contact Eric J. Weibel, at email@example.com or at 1-877-970-2582, and the appropriate application form will be provided to you.
I look forward to working for you.
Eric J. Weibel, RPLU
President, Alta Financial & Insurance Services, LLC
Phone: 1-877-970-2582 / Fax: 1-877-971-2582