Law Firms' Secret Weapon D&O Insurance Guide
Cost Considerations
The cost of D&O insurance varies significantly based on factors such as the size of the firm, industry sector, and claims history. On average, small to medium-sized firms might pay anywhere from $5,000 to $10,000 annually for a $1 million policy1. Larger firms or those operating in high-risk industries may face higher premiums. It's crucial for law firms to carefully evaluate their risk profile and work with experienced brokers to find the most cost-effective solutions.
Real-World Examples
A notable example of D&O insurance in action is the case of a multinational law firm facing a class-action lawsuit from disgruntled shareholders. The firm's D&O policy covered the legal defense costs and settlement fees, preserving its financial stability and reputation. Such cases underscore the importance of having a well-structured D&O policy in place.