Rising D&O Risk Awareness: 85% of Policyholders Perceive Higher Exposure, with 10–15% Already Facing Claims

-Exclusive data by Policybazaar For Business ~

Key Insights at a glance

1. D&O policy sales have grown by 25–35% both industry-wide and on our platform.
2. 35% of clients bought D&O insurance from our platform for the first time.
3. 10–15% of our D&O policyholders have filed claims, underscoring real-world leadership liability.
4. 85% of clients renewed D&O policies, showing strong confidence in its risk management value.
5. D&O policy uptake and coverage limits are rising among IPO-bound companies.

• Defination- Directors and  officers  (D&O)  liability  insurance  is  insurance  coverage intended to protect individuals from personal losses if they are sued as a result of serving as a director or an officer of a business or other type of organization.

Rise in Demand: D&O insurance is seeing 25–35% growth, driven by greater board accountability, investor pressure, and regulatory interventions. Moreover, there’s a clear shift from compliance-driven purchases to proactive risk management—boards now view D&O coverage as essential, not optional.

First time buyers: 35% of clients purchased D&O insurance through our platform for the first time, reflecting a notable shift in market behaviour and growing recognition of D&O coverage as a key risk management tool in evolving litigious business landscape.

Additionally, this trend underscores a rising awareness—particularly among promoters, startups, and mid-sized enterprises—of the personal liability risks faced by directors and key managerial personnel.

D&O claim trends: Between 10–15% of D&O policyholders on our platform have reported claims, highlighting the real-world implications of leadership liability. The major reason for the claim trigger are :

• Alleged Breach of Fiduciary Duty: The most frequently cited cause, highlighting the increasing scrutiny on board-level decisions.
• Litigation Costs: A significant portion of claims stem from the high cost of legal defense, even in cases where allegations are unproven.
• Regulatory Investigations: Regulatory scrutiny, particularly in sectors such as fintech and healthcare, is a growing driver of claims.
• PR and Crisis Management: A notable number of claims also involve coverage for reputation management and crisis response, indicating the reputational stakes involved in D&O exposures.

D&O Policy Renewal Trends: Over two-thirds—approximately 85%—of our clients have renewed their Directors & Officers (D&O) insurance policies, either through our platform or via another intermediary. This high renewal rate reflects sustained confidence in the value of D&O coverage as a core risk management tool.

Policy discontinuation remains minimal, with non-renewals primarily linked to changes such as mergers and acquisitions, shifts in shareholding patterns, or company closures.

Other Trends:

1. D&O policy uptake and coverage limits are rising among IPO-bound companies.
2. ESG failures (e.g., environmental negligence, DEI lawsuits) and cybersecurity lapses are emerging as key drivers of D&O exposure.

• More businesses are opting for non-rescindable Side A-only excess policies, especially for independent directors, offering broader protection in cases of insolvency or lack of indemnification.

1. Directors—are increasingly requesting D&O policy reviews before accepting board positions, reflecting heightened caution around personal liability.

Average sum insured and premium range for different business sizes

Business Type	Drivers	Avg SI	Avg Premium
Small Enterprises (Startups, SMEs)	First-time funding, board requirements, investor mandates	50 Lakhs to 2 Cr	10k to 1 Lakhs
Mid-Sized Companies	Expanding operations, increasing regulatory scrutiny, more external stakeholders	2 Cr to 10 Cr	1 to 5 Lakhs
Large Enterprises / Corporates	Public listings, mergers/acquisitions, high-profile leadership, global presence	Greater than 10 Cr	Greater than 5 Lakhs

A table showing plans and premium

Insurer Name	ATS
Bajaj Allianz General Insurance Company Ltd	53,974
Cholamandalam MS General Insurance Company Ltd	13,570
Future Generali India General Insurance Company Ltd	38,141
HDFC Ergo General Insurance Company Ltd	1,24,118
ICICI Lombard General Insurance Company Ltd	70,458
Iffco Tokio General Insurance Company Ltd	1,16,395
Liberty General Insurance Co. Ltd	59,000
National Insurance Company Ltd	41,300
Raheja QBE General Insurance Company	86,013
Reliance General Insurance Company Ltd	18,989
SBI General Insurance Company Ltd	46,178
Tata AIG General Insurance Company ltd.	1,12,594
The New India Assurance Co. Ltd.	89,090
The Oriental Insurance Company Ltd	7,08,000
United India Insurance Company Ltd	2,26,677

Spokesperson Quote

Evaa Saiwal – Head of Liability Insurance at Policybazaar for Business , “As we experience a remarkable 25-35% growth in D&O policy sales, it’s clear that the business landscape is undergoing a significant transformation. What once started as a compliance-driven necessity has now evolved into a cornerstone of proactive risk management. The increasing recognition of D&O insurance as a vital safeguard for leadership reflects a strategic shift in how businesses approach risk. Notably, 35% of our clients are securing D&O insurance for the first time, a powerful indicator of the market’s maturation and the expanding role of risk management. Furthermore, with approx 85% of our clients renewing their policies, it’s evident that boards are placing unwavering confidence in D&O coverage as a fundamental element of their risk mitigation strategy. As IPO-bound companies embrace D&O coverage more than ever, we are witnessing a surge in its value—a direct response to the growing prominence of board accountability and the very real threat of leadership liability in today’s fast-paced, litigious environment”