Directors & Officers Insurance Calculator

Annual Premium only rises 3% per director beyond the first 5, not proportionally to headcount -- so as Number of Directors & Officers increases, the total premium grows much more slowly than the director count does. Dividing that slower-growing premium by a faster-growing headcount means Cost per Director/ Officer falls even though Annual Premium itself is rising.

Yes -- this calculator's exposure basis averages Total Assets and Annual Revenue together rather than using assets alone, since D&O underwriters typically weigh both the balance sheet and revenue as separate exposure signals. Raising either one, holding the other fixed, increases the estimated premium.

Each claim entered in D&O Claims in Last 5 Years adds a 30% surcharge to the base premium calculation in this model -- so two prior claims apply exactly a 60% surcharge, multiplied together with the company-type, director-count and coverage-limit factors. Insurers generally do treat recent claims history as one of the strongest signals of future D&O risk.

Increased limits get cheaper per dollar as you buy more of them, so this model prices Coverage Limit on a continuous power curve anchored at $1 million rather than scaling one-for-one: doubling the limit raises the factor by about 15%, not 100%. Two guardrails also apply. Rate on Line -- premium divided by limit -- is capped at 10%, because no real D&O program costs a large fraction of what it can ever pay out, and a $1,000 minimum premium applies at the small end. If your inputs push the estimate into either bound, treat it as "outside what this simplified model can price" and get a real broker quote.