So how much does Directors & Officers insurance really cost? A question that’s frequently discussed amongst our sales team when placing D&O programs. Often clients will come to us and ask us to provide them cost estimates before diving into their company operations, financials, and cap table. The truth is that D&O premiums vary quite significantly, based on companies unique circumstances, however, we are able to provide ballpark ranges based on our experience.

And that’s what lead us to create this infographic. We wanted to provide a visual medium to explain what D&O insurance is, help other high-growth companies benchmark their current D&O policy or set expectations if they’re getting one for the first time. We did some data mining on our policy database to dive a little deeper into what factors impact D&O pricing. We looked at funding, company size, industry, limits in addition to policy structure.

Key Findings:

  • As institutional investments come in, you bring in more sophisticated investors and therefore more sophisticated attorneys and litigation issues. We found that D&O pricing tends to increase as a company completes funding rounds.
  • Each insurer is different, but often $50M in revenue is the dividing line between “small business” and “middle market”. We found that there is quite a significant increase in the average premium for companies over $25M in revenue.
  • More complex industries carry higher premiums. Due to the regulatory scrutiny and the type of customers like financial institutions, companies in the Fintech and HealthTech industry tend to carry higher D&O premiums even if the company is early stage.

Check out the infographic below, or fill out the form to download a pdf version of it!

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