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How to Prepare an Effective RFP for Directors and Officers (D&O) Liability Insurance Renewals

Directors and Officers (D&O) renewal cycles are high-stakes events for companies across the United States — especially in markets like New York, San Francisco (Bay Area) and Houston where regulatory, litigation and industry exposures drive underwriting scrutiny. A well-crafted Request for Proposal (RFP) speeds placement, improves pricing, and attracts broader carrier interest. Below is a practical, market-focused guide to preparing an effective D&O RFP that brokerage teams and risk managers can use to win capacity and better terms.

Why an RFP matters for D&O renewals

  • Creates competition. A concise, data-rich RFP enables carriers to compare exposures quickly and bid competitively.
  • Clarifies expectations. Proper coverage language, exclusions and limits reduce negotiation cycles at bind.
  • Improves placement speed. Underwriters under time pressure price faster when presented with organized information.
  • Supports broker leverage. Detailed RFPs empower brokers to use relationships and tailored submission strategies to secure capacity.

See strategic broker selection guidance: How to Choose the Right Broker for Your Directors and Officers (D&O) Liability Insurance Placement.

Pre-RFP preparation: data you must gather first

Collecting reliable, current data before you write the RFP is essential:

  • Corporate profile (legal entity list, state(s) of incorporation, key subsidiaries)
  • Latest financials (last 3 years audited statements; current year budget/forecast)
  • Ownership structure (public/private, VC/PE-backed, foreign owners)
  • Board composition and key executive bios
  • Pending and recent litigation (details, reserves, outcomes)
  • Prior D&O policy wording, limits, and retention details
  • Prior year losses (paid and outstanding), including settlement details
  • Regulatory inquiries, investigations or enforcement actions
  • Mergers & acquisitions activity, IPO plans or planned financings
  • Risk mitigation actions (compliance programs, cyber controls)

Core sections to include in a D&O RFP

Structure your RFP so underwriters can find the answer within 1–2 clicks:

1. Executive Summary

  • Purpose of RFP and desired timing (e.g., 60–90 days before expiry)
  • Target program structure (primary limit, total tower target)
  • Contact points (legal, risk manager, CFO)

2. Corporate & Financial Snapshot

  • Revenue, EBITDA, and total assets (last three fiscal years)
  • Market(s) served and regulatory regimes (SEC-reporting? State regulators?)
  • Key jurisdictions of exposure (e.g., New York, California, Texas)

3. Coverage Requirements & Prior Policy Terms

  • Desired limits (e.g., $5M primary; follow-form excess up to $25M)
  • Retention/deductible expectation (e.g., $250K–$1M)
  • Specific endorsements required (e.g., Side A excess wording, SEC exclusion carve-outs)
  • Claims-made retroactive date and extended reporting period needs

4. Claims & Loss History

  • Itemized list of D&O claims last 7 years (claimant, alleged acts, defense costs, outcome)
  • Pending claims with status and estimated exposures

5. Corporate Governance & Risk Controls

  • Board committees, audit controls, anti-fraud controls
  • Recent governance changes (e.g., new C-suite hires, board refresh)

6. Target Pricing & Commitment

  • Desired premium budget range and insurer appetite statements
  • Preference for multi-carrier towers vs single-carrier structure (see pros/cons link below)

Review placement strategy tactics with: Placement Strategies That Win Capacity: Techniques Brokers Use for Directors and Officers (D&O) Liability Insurance.

Pricing expectations — market context and indicative ranges

The D&O market hardened in 2022–2024 with rate increases across many segments. Recent market commentary shows renewal rate increases varying by size, sector and claims history. Sources: Aon, Marsh, S&P Global Market Intelligence. See below for indicative premium ranges (U.S. market, as of 2024–early‑2025 conditions). These are illustrative; obtain carrier quotes for firm pricing.

Company Profile Typical Primary Limit Typical Total Tower Indicative Annual Premium (USD) Common Carriers
Small private (rev $5–25M) — e.g., Bay Area startup $1M–$2M $3M–$5M $8,000 – $30,000 Chubb, Travelers, CNA
Mid-market private (rev $50–300M) — e.g., NY-based services firm $5M $20M–$30M $75,000 – $350,000 AIG, Zurich, Chubb
Large public (rev $500M–$5B) — e.g., Houston energy company $10M–$25M $50M–$100M+ $750,000 – $4,000,000+ AIG, Allianz, XL/CXL

Sources: Aon D&O market reports; Marsh Global Insurance Market Index; S&P Global Market Intelligence analysis. Example market overviews:

Note: Specific carrier appetite varies by industry (e.g., biotech vs. energy) and by location (California/NY litigation environments typically command higher premiums).

How to present pricing & structure requests to attract more carriers

  • Offer clear tower architecture (primary, follow-form excess layers)
  • Provide desired attachment points and explain flexibility (e.g., willing to raise retention to lower premium)
  • State whether you will accept lead/non-lead positions
  • Invite carriers to propose alternative structures (e.g., higher primary with lower excess)

Negotiation & timing tips

  • Start the RFP process 90–120 days before expiration for mid-market and large public placements; 60–90 days for smaller private companies. Late marketing reduces competition and increases cost. See timing guidance: Timing Your Purchase: When to Market Your Directors and Officers (D&O) Liability Insurance for Best Terms.
  • Share an underwriter Q&A window and a single consolidated document repository (e.g., secure SharePoint or data room).
  • Run parallel submissions: primary first to secure lead, then excess marketing.
  • Use broker relationships to seed interest with capacity providers known to prefer your industry.

Evaluation criteria for carrier responses

Weight proposals using an RFP scoring matrix:

  • Price & fees (40%)
  • Coverage breadth & exclusions (25%)
  • Claims handling reputation (15%)
  • Financial strength (AM Best/A.M. Best ratings or S&P) (10%)
  • Service, loss control and contract language flexibility (10%)

Common RFP pitfalls to avoid

  • Overloading underwriters with unorganized documents
  • Omitting prior claims or material disclosures
  • Not specifying desired policy form or endorsements
  • Starting the process too late for complex towers

For more detail on common mistakes and how brokers avoid them, see: Placement Pitfalls: Common Mistakes That Weaken Directors and Officers (D&O) Liability Insurance Programs.

Sample RFP timeline (recommended)

  • T-minus 120 days: Assemble RFP materials and select distribution list
  • T-minus 90 days: Issue RFP to selected carriers/brokers
  • T-minus 60 days: Underwriter Q&A completed; first indicative pricing due
  • T-minus 30–45 days: Final binding indications; negotiate terms
  • T-minus 15–30 days: Select lead and bind policy

Final checklist (for immediate use)

  • Comprehensive corporate & financial packet included
  • Seven-year claims report with reserves and outcomes
  • Target limits, retention and endorsements clearly stated
  • Timeline and contact points specified
  • Data room link and document naming convention
  • Broker(s) instructed to run competitive marketing with follow-up cadence

Preparing a crisp, data-driven RFP tailored to your jurisdiction (e.g., New York, California, Texas) and industry is the single best action a risk manager can take to improve D&O renewal outcomes. For hands-on broker selection tactics that complement your RFP process, review: How to Choose the Right Broker for Your Directors and Officers (D&O) Liability Insurance Placement.

External market resources

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