On Monday, in a statement insurance broker Marsh stated, global commercial insurance rates saw a rise of 19% during the second quarter, driven by higher by claims related to COVID-19 and other large losses.
The company is witnessing its highest ever insurance rate ever since it began a commercial insurance rates survey in 2012.
“Directors & officers’ insurance premiums in Britain rose by more than 100%, while in the United States, D&O rates for public companies were up by 59%,” said Marsh.
Companies buy D&O insurance to protect against litigation costs.
“As insurers continue to work through claims in property and D&O, and with the full cost of COVID-19 still developing, upward pressure on pricing is anticipated for the balance of 2020,” said Dean Klisura, President, Global Placement and Advisory at Marsh.