Insurance Curator Directors and Officers (D&O) liability insurance pricing varies widely across carriers, geographies and company profiles. For U.S.-based organizations—especially in hubs like New York City, San Francisco and Austin—benchmarking quotes is the only reliable way to ensure competitive coverage and cost. This article gives a practical, market-focused framework for comparing D&O offers across providers, with illustrative pricing benchmarks, underwriting drivers, and negotiation levers.
Why benchmark D&O quotes (and when to re-benchmark)
- Market cycles matter. Hard markets push premiums up; soft markets improve leverage. Timing your renewal or marketing can change pricing materially.
- Coverage terms vary (side-A, corporate reimbursement, entity exclusions, M&A carve-outs), so price alone is insufficient—you must compare apples-to-apples limits, retentions and sub-limits.
- Company events (IPO, M&A, regulatory inquiry) often require immediate re-benchmarking.
See how market cycles affect pricing in more depth: Market Cycles and Capacity: How Hard and Soft Markets Impact Directors and Officers (D&O) Liability Insurance Rates.
Key underwriting and pricing drivers (high level)
Underwriters synthesize hundreds of data points into a quote. The most important drivers are:
- Company size and revenue
- Industry risk (tech, biotech, financial services generally pay higher rates)
- Claims and litigation history
- Financial volatility and disclosure quality
- Board composition and governance scores
- Transaction activity (IPOs, M&A)
- Jurisdictional exposures (state court venues, regulator activity in NY/CA)
For a detailed explanation of rating drivers, see: How Insurers Price Directors and Officers (D&O) Liability Insurance: Key Rating Drivers Explained.
How to structure benchmarking (practical steps)
- Prepare standardized submission materials for each carrier:
- Last 3 years of financials, cap table, board bios, governance documents, claims history.
- Recent Form C/10-K/8-K if public, or investor deck if private.
- Define the exact coverage you need:
- Limits (e.g., $5M per claim / $5M aggregate)
- Side-A difference in conditions (if required)
- Retention (e.g., $25k, $100k, $250k)
- Solicit multiple carrier quotes (tier-1 carriers + market specialty carriers via broker).
- Build a comparison matrix that aligns limits, retentions, sub-limits and key endorsements.
- Negotiate on terms, not only price—seek favorable exclusions, broader civil fines coverage, and better extended reporting period (tail) terms.
Also review the underwriting checklist to improve your submission: Underwriting Checklist: What Insurers Look for When Evaluating Directors and Officers (D&O) Liability Insurance Risk.
Illustrative benchmark scenarios and comparative quotes (U.S. market)
The table below shows illustrative market quotes for typical U.S. scenarios in 2023–2024 market conditions. These are approximations based on market reports from major brokers and industry press and are provided to help you benchmark quotes you receive. Exact pricing will vary by carrier appetite and underwriting detail.
| Scenario | Profile (location) | Common limits & retention | Carrier A (Chubb) | Carrier B (AIG) | Carrier C (Travelers) | Notes |
|---|---|---|---|---|---|---|
| Scenario 1 — VC-backed tech scale-up | San Francisco, CA — $25M revenue, Series C | $5M limits / $25k retention | $22,000 – $35,000 | $25,000 – $38,000 | $20,000 – $32,000 | Tech with strong governance gets competitive pricing; higher tech risk or weak disclosures adds 20–50%. |
| Scenario 2 — Mid-market private company | Austin, TX — $150M revenue | $5M limits / $100k retention | $45,000 – $80,000 | $48,000 – $85,000 | $42,000 – $75,000 | Industry (manufacturing vs fintech) drives the spread; prior claims increase mid-market rates sharply. |
| Scenario 3 — Small public company | New York City, NY — $500M revenue (public) | $10M limits / $250k retention | $150,000 – $350,000 | $165,000 – $375,000 | $140,000 – $330,000 | Public companies face higher exposure and securities litigation risk; pricing varies by volatility and prior suits. |
- Pricing ranges reflect market dispersion across top-tier underwriters in major U.S. jurisdictions.
- Expect 10–40% variation between carriers for similar coverage in the same market window; specialized underwriting credits (e.g., strong governance scores) reduce pricing.
Sources used for market context: Marsh, Aon and industry press market reports (see Sources below).
Interpreting quotes — what to compare beyond the premium
- Retention/Deductible: Moving retention from $25k to $100k will materially lower the premium but increases board exposure.
- Side-A Limits and Wording: Pay attention to Side-A wording—if the company is thin of assets, Side-A becomes critical.
- M&A and IPO carve-outs: Transaction activity often triggers sub-limits and materially higher costs; ask for dedicated transaction coverage if expected.
- Severability/Defense Outside Limits: Defense costs inside the limit reduce indemnity—clarify whether defense is inside or outside limits.
- Exclusions and Community of Insured: D&O endorsements (e.g., ERISA, criminal acts, bodily injury) materially change exposure.
Negotiation levers brokers and insureds can use
- Present a clean submission: full financials, board biographies, anti-fraud disclosures and prior claims details. Good submissions reduce perceived risk and lower quotes.
- Offer higher retentions where acceptable to reduce premium.
- Request multi-year agreements or aggregate deductibles to stabilize pricing.
- Bundle with other coverages (crime, EPLI) to get carrier credit.
- Market to specialty carriers for industry-tailored capacity (life sciences, fintech, etc.)
Read more on how to negotiate pricing and broker strategies here: Negotiating Pricing: What Brokers Can Do to Improve Directors and Officers (D&O) Liability Insurance Terms.
Practical checklist before accepting a quote
- Confirm coverage comparability (limits, defense inside/outside, side-A wording).
- Benchmark at least 3–5 carriers including specialty underwriters.
- Verify referenced endorsements and exclusions in writing.
- Run scenarios (Securities suit, regulatory investigation, M&A claim) to assess worst-case exposure.
- Review renewal strategy with broker 90–120 days out to avoid rushed markets.
Final tips for companies in NYC, SF and Austin
- New York (dense securities litigation environment) will usually see higher public-company D&O pricing—prepare detailed disclosure histories.
- San Francisco tech firms should emphasize governance, cyber controls and investor relations to secure better D&O rates.
- Austin and other Texas hubs often get competitive mid-market pricing—leverage local broker relationships and regional carrier appetite.
Sources
- Marsh — Directors & Officers (D&O) insurance overview and market commentary: https://www.marsh.com/us/solutions/insurance/directors-and-officers-d-and-o-insurance.html
- Aon — D&O insurance market insights: https://www.aon.com/solutions/risk-solutions/directors-officers-liability.jsp
- Insurance Journal — D&O market trends and rate movement reporting: https://www.insurancejournal.com/topics/directors-and-officers/
If you’re actively marketing a renewal, collect the items listed in the benchmarking section and seek at least 3 comparable quotes from carriers listed above to validate whether your incumbent premium is competitive.