Trends in D&O Coverage


More customization and tougher underwriting are among the trends in directors & officers coverage. “These days we are seeing a lot more customization.”


Maria Treglia, Program Brokerage Corp.


The D&O market is in transition, producing changes in the forms, terms and conditions in policies for nonprofits. In contrast to the off-the-shelf products so prevalent five years ago, today’s policies are more customized, reflecting each nonprofit organization’s specific operations and exposures. As the profitability of the entire D&O line has come under pressure, underwriters are much more frugal, no longer throwing in extra coverage for producer liability or antitrust exposure at no added cost. Recognizing that nonprofits have limited resources to pay higher premiums, carriers are increasing deductibles. They are also offering far lower limits, which means more nonprofits will be layering excess policies from several carriers. Having multiple carriers on a risk can complicate the claims process, making it even more crucial to have coverage with a carrier that has deep expertise in the directors & officers insurance arena.


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