How much does D&O insurance cost?

The cost of D&O insurance depends on a number of factors, including your company's revenue and amount of debt, the makeup of your board of directors, the type of your business, and claims history.

For Insureon customers, the median cost of D&O insurance is $103 per month, or $1,240 annually. The median provides a better representation of what you can expect to pay because the average cost of D&O insurance includes high and low outliers.

Many small businesses (54%) pay less than $1,500 per year for D&O insurance and 18% pay between $1,500 and $3,000 per year.

The median limit of D&O insurance policies purchased by Insureon customers is $1 million and the median deductible is $1,000. Higher limits pay out more on a claim but also cost more. The deductible is the amount the policyholder must pay before collecting on a claim.

Pay your entire premium upfront. You can typically pay your premium in monthly or annual installments. It might be tempting to go with a smaller monthly payment, but consider paying the full premium instead. Businesses can usually save money this way because many insurers offer discounts on annual premiums.

Proactively manage your risks. If your business has no claims history, expect to pay lower insurance rates. An effective way to do this is to create a comprehensive risk management plan. For example, you might:

• Form internal protocols for hiring and firing employees
• Respond promptly to claims of harassment
• Standardize the decision-making process to ensure board decisions are well-informed

Insurance premiums vary based on the policies a business buys. See our small business insurance cost overview or explore costs for a specific policy.

• General liability insurance
• Professional liability insurance
• Business owner’s policy
• Errors and omissions insurance
• Workers' compensation insurance
• Cyber liability insurance
• Commercial umbrella insurance
• Commercial auto insurance
• Employment practices liability insurance