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Procurement Market Intelligence Report

Directors & Officers Liability Insurance
Sourcing Guide & Market Trends

Comprehensive intelligence for making smart purchasing decisions

Learn about actual and potential costs

How much should I pay for Directors & Officers Liability Insurance?

What is the average price of Directors & Officers Liability Insurance?

This procurement report includes pricing information to help you purchase Directors & Officers Liability Insurance. Our analysts provide a benchmark price and a price range based on key pricing factors to help you understand what you should be paying for this specific product or service. To see the average price for this and hundreds of other products and services, subscribe to ProcurementIQ.

Has the price of Directors & Officers Liability Insurance been rising or falling?

Analysts look at market data from the previous three years to determine an overall price trend. You can use the recent price trends to help you understand price volatility and plan your budget.

I’m not ready to purchase Directors & Officers Liability Insurance yet. Will I pay more if I wait too long?

We forecast the next three years of price movements by looking at factors likely to affect the market's supply chain, such as inputs, demand and competition. You can then use the price forecast to figure out the best time to purchase.

What other costs are associated with purchasing Directors & Officers Liability Insurance?

Our analysts calculate the total cost of ownership and assign a level of low, moderate or high, depending on things like customization, integration and installation. Use this information to budget for Directors & Officers Liability Insurance with a reduced risk of unexpected costs.

See how we display average pricing information, trends and market data.

Find the vendor to meet your needs

Where can I purchase ?

Among the estimated 150 D&O liability insurers in the US market, the top four operators account for about 40.0% of total market revenue, signaling a moderate degree of concentration. Consolidation among insurance companies has been contributing to rising market share concentration during the three years to 2020, whereby operators have... Subscribe to learn more.

Questions to ask potential suppliers

How can I gain leverage during negotiations?

Experience and Expertise

How long have you provided these products to your longest-tenured client?

What qualifications does your staff have and what measures do you take to keep those qualifications up to date?

What industry do you most commonly supply this product for?

To what extent will ordering multiple products from your firm allow me to save on costs?

What is your repeat business rate for businesses in my industry and how does that compare to your overall rates?

Supply Chain Risk

Over the past three years, what percentage of your revenue has been dedicated to raw input materials? How has that changed?

Has the availability of raw materials tightened due to the coronavirus outbreak?

Over the past three years, what percentage of your revenue has been dedicated to labor?

How have fluctuations in input prices affected the prices of your products during the past three years?

How do you mitigate sudden price increases in raw materials?

When input prices rise, how much of the cost is absorbed by you and how much is passed onto buyers?

How, if at all, has your supply chain been affected by import tariffs levied in 2018?


How do you manage regulatory change? Do you have regulation advisers or methods to track regulation?

How have changing regulations influenced your pricing now and how will the changes affect prices over the life our proposed agreement?

What ongoing training procedures do you provide for your staff?

Have you ever been found to be noncompliant with regulatory frameworks?

Amid widespread health concerns during the COVID-19 pandemic, what contingency plans are in place to mitigate risk to your clients and employees? Do you offer clients any flexible exceptions, such as contract suspensions?

Experience & Qualifications

How long has your company been operating in the D&O liability insurance market?

What is the average size of a policy you manage? Have you previously managed policies for groups of my company's size?

How many policies do you manage?

Do you specialize in D&O liability insurance, or do you also offer other types of insurance?

What is your renewal/repeat business rate for businesses in my industry and how does that compare to your overall rates?


How do you attract new clients and retain existing clients?

(If a large company): How do you compete with the emergence of smaller players in the market?

(If a small company): How do you compete with the reputation of large, established service providers in the market?

What is your reputation like among customers and peers, and how have you developed it?

What is your client turnover rate? How long do your contracts last, on average?

Employee Turnover

How do you recruit and retain senior staff?

What are the various stages of your hiring process? What specialized skills do you require your employees to possess?

How does your firm mitigate the risks of employee turnover?

How are you making sure that your insurance knowledge is up to date?

On average, how many years of experience does your staff have in this field? How does that measure up to the industry average?

Financial Strength

What actions do you take to mitigate your risk of bankruptcy?

What is your loss ratio, combined ratio, expense ratio and operating ratio?

How do you ensure that your company has enough cash reserves to honor claims?

What evidence supports your claim of consistently honoring contractual liabilities to buyers? Do you have copies of recent financial statements available for viewing?

How has the coronavirus outbreak affected your ability to pay claims on time?

Are you experiencing fluctuations in demand as a result of the coronavirus outbreak? What measures are you taking to handle changes in demand?

Amidst widespread health concerns, what contingency plans are in place to mitigate risk to your clients and employees?

Fee Structure

How do you arrive at the policy premiums you charge clients?

How do you determine the risk of a policy holder? What factors most strongly affect a buyer's risk?

What steps can a buyer take to reduce their risk?

Do you charge any additional fees to clients? If so, what are those fees?

Customer Service

How many customer service representatives do you have? What are their hours?

Through what mediums may a client contact you?

How do customer service representatives resolve policy issues?

On average, what is your response time for a claim? And for a general query?

What is your rate of accuracy for claim, amendment and endorsement processing?

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Key elements for every RFP

What should my RFP include?

Project Budget

Buyers should request a detailed breakdown of insurers’ premium rates.

Buyers should outline any other costs for which insurers are responsible (e.g. mailing documents).

Selection Criteria

Buyers should evaluate insurers based on their costs.

Buyers should evaluate insurers' ability to meet their coverage needs.

Buyers should evaluate insurers' market experience and financial performances.

For other selection criteria requirements, buyers should reference the Buying-Decision Scorecard section of this report.

Project Schedule

Buyers should include the date when proposals are due and any other relevant dates (e.g. final interviews) prior to the contract award.

Buyers should include the date the contract begins and ends, as well as any options for renewal.

Evaluate major factors to mitigate risk

How risky is the supply chain?

The supply chain risk for D&O liability insurance is moderate. Vendors of D&O liability insurance procure inputs from numerous upstream suppliers in order to facilitate their operations, including copier and office equipment wholesalers, reinsurance carriers, portfolio management firms and computer equipment wholesalers. Despite the modest degree of supply chain risk... Subscribe to learn more.