As the coronavirus pandemic puts directors’ and officers’ premiums into overdrive, Insurance Times takes a look at potential claims risks and trends in this section of the market
Escalating premiums for directors’ and officers’ (D&O) insurance could see firms refuse to purchase or reduce this cover, leaving senior professionals personally on the hook for any arising claims.
Outlining this potential problem, James Wickes, partner at law firm RPC, explained: “After years of soft market conditions, insurers have increased D&O premiums to bring pricing up to a point that more accurately reflects the increased risk environment for D&Os. The challenge for the market will be reaching a price point that reflects the risk, but which is also affordable for businesses to pay.”
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