Survey Of Insurance Purchasing Trends

In its 2010 Directors and Officers (D&O) Liability survey, Towers Watson found that 21% of respondents said they had increased their D&O limits compared to their prior D&O policy (versus 12% in 2008), while 75% said their limits had stayed the same (versus 86% in 2008). Only 3% said they had decreased their limits.

Of the respondents with international operations, 47% purchased a local D&O policy in a foreign jurisdiction, up from 2% in 2008 survey. Some country require coverage to be “in country”.

When asked if they had conducted an independent review of their D&O program within the past two years, 54% of respondents said that they had not.

It is important to note that D&O liability is not written subject to “standard policy wording” virtually all can be different. Many policies are written on a “claims-made” basis, be very cautious when renewing or purchasing new coverage. ◆