D&O liability insurance coverage for public companies have undergone drastic changes recently. Insurance carriers are raising premiums and tightening coverage in response to the flood of lawsuits, losses from the overall decline of the stock market, the tragedy of 9/11 and corporate scandals. The continued volatility of the stock market could lead to an increase in claims against executives. The result is increased rates and more exclusions for D&O liability insurance policies.

This makes it harder for you to secure appropriate D&O liability insurance coverage — not only at the right price — but also a D&O coverage that offers security both to your business assets and also your personal assets which are at risk. That's why you need someone that specializes in insuring public companies and has access to the whole D&O insurance market.

With over 100 years of experience, InsurePro - a division of Gaston & Associates, has access to the whole D&O liability insurance market including surplus lines and London syndicates. This means that we can often negotiate a D&O liability insurance policy that offers extended coverage at a very competitive price.

The driving goals of InsurePro’s marketing effort are to secure quotations that are more cost competitive, and to evaluate the structure of any existing Directors and Officers (D&O) coverage.

A wide variety of factors impact Public D&O underwriting including:

	Size and industry
	Financial characteristics
	Corporate practices
	Board of directors

There are several factors influencing the pricing:

	The insurance market has hardened in the last couple of years. We are frequently encountering higher D&O liability insurance pricing across the board on renewals, and this is especially true with respect to Public Companies.
	Many insurance companies have withdrawn from the D&O liability insurance market and are declining to provide D&O coverage, at least temporarily. This makes it even more challenging to secure quotations and coverage as the lack of availability of carriers adversely affects D&O pricing.

It is now more common to write EPL on the same policy as the D&O liability insurance. While this practice might offer some savings in the short term, one should consider that the EPL exposure for the entity might be quite significant and a large claim can quickly erode the D&O coverage that is available.

InsurePro generally recommends having the EPL as a separate insurance policy, but factors specific to your industry or your business might influence whether or not having the EPL on the same policy as the D&O makes sense.