D&O Insurance - What's Really Covered?

D&O insurance - what's really covered?
I get it, D&O Insurance is confusing. It's not like a lot of other liability coverage forms you're familiar with so I did this video to explain what is covered and what's not to give you a better understanding of this important coverage part.
I like to think of D&O Insurance or Directors & Officers Insurance as "Personal Net Worth Insurance" because it protects the net worth of owners, directors, officers, and managers of private and public companies from claims which arise from wrongful acts and name defendants PERSONALLY in lawsuits!
thecoylegroup.com/do-insurance/
For more info on D&O Insurance, please contact me:
👦 Gordon Coyle is the CEO of The Coyle Group, a New York-based insurance brokerage and risk consulting firm, operating across the country, focused exclusively on the business insurance market.
🏡To learn more about The Coyle Group, please visit: www.thecoylegroup.com we are located at: 30 South Main Street, New City, NY 10956 845-634-3606
☎To contact Gordon please call: 845-474-2924
📫 and his email is [e-mail]
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[@paulmc9203]

Great (succinct!) explanation Gordon.

[@TheCoyleGroupNY]

Thank you Paul!

[@yashasgamer6599]

You also mentioned that ransomwere could also be covered under D&O
My institution buys cyber and D&O policies and ransomwere coverage is brought separately in cyber policy
So could I drop ransomwere clause from the cyber policy as D&O covers the same anyway

[@TheCoyleGroupNY]

Yashas - Thanks for your questions. How to decide what limits to purchase is more of an art than science. There's no exact mathematical formula, instead, the most common approach we use is to benchmark the decision. We go to a database and query your industry and revenue size and see what your peer group is buying. The resulting report would tell us the common limits purchased by percentage in the peer group. For example, 40% of the group purchases $2m to $3m in limits, 18% purchase $4m-$6m, and so forth. Regarding the question on cyber, my comment is that in some management policy forms you can add other policies such as cyber to it as a package. This is commonly done in smaller firms, and I don't recommend adding Cyber due to the need for a broad cyber policy with its own limits of coverage. D&O does not automatically include Cyber or ransomware, those are the domain of a cyber policy. If you have any other questions, let me know - [e-mail] Thanks!

[@yashasgamer6599]

Could you throw some lights on how to decide coverage limit while buying D&O policy
What is the optimum limit for my company/or any institutions
Is there any mathematical formula for the same
Is there any guidelines

[@TheCoyleGroupNY]

Hey Yashas - sorry for the delayed answer, I hadn't seen your question before. It's a good one too. Limits of coverage in my opinion are based on two things: 1. benchmarking > what is your peer group typically buying? Benchmarking reports will tell you what limits of coverage firms in your industry in a similar revenue size band are commonly buying. It might say that 60% of similar firms are buying $1M to $3M in limits, and so forth...... #2. is budget - you need to be realistic on what you can afford to buy which is why I recommend asking for options rather than just looking at proposals for $1M in limits. Look at $2M, $3M, etc.
Hope that helps. If you want to reach out to me directly, here's my email: gbcoyle (@) thecoylegroup.com thanks