Average Cost of Directors & Officers (D&O) Insurance in Dallas, TX (2026)

As a business leader in Dallas, you make decisions that shape your company’s future - and sometimes your personal financial risk, too. If someone alleges a “wrongful act” (like a breach of duty, mismanagement, or misleading statements), Directors & Officers (D&O) insurance may help cover legal defense costs and certain settlements, depending on the policy.

Claims can come from investors, board members, employees, regulators, or even competitors. And even when leadership acted in good faith, the cost to defend an allegation can add up fast.

We’ve been helping to protect Dallas for over 28 years. At Thumann Insurance Agency, we’ve worked with thousands of Texas businesses, and we partner with 80+ carriers so you can compare options and choose coverage that fits your contracts, leadership structure, and risk profile - without the runaround.

In this guide, you’ll learn

• What D&O insurance typically costs in Dallas (and why pricing varies so much)

• What drives your premium up or down

• The difference between Side A, Side B, and Side C

• Who needs D&O most in Dallas/DFW

• What you’ll need for quotes (so you can move faster)

*Last updated: January 2026.

 

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How much does D&O insurance cost in Dallas in 2026?

Here’s the honest answer: there isn’t one “average” price that fits everyone. D&O pricing depends heavily on:

• your revenue and financials

• your industry

• whether you have investors or outside directors

• claims history (or any known issues)

• coverage limits + retention (deductible)

• what coverage “sides” you’re buying (A/B/C)

 

Typical D&O cost benchmarks (as a starting point)

• Many small to mid-size private companies start around a few thousand dollars per year for lower limits, but pricing can climb quickly as risk increases.

• Nonprofits may start lower, but organizations with larger budgets, complex governance, heavy public visibility, or prior claims can pay substantially more.

• Higher limits (like $5M or $10M) can move costs into five figures or more, depending on the risk and terms.

Instead of chasing a “perfect average,” the goal is to understand what pushes you to the low end vs. high end - and then quote accordingly.

 

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2026 Dallas D&O example ranges.

These examples show how quotes can vary. Your exact pricing depends on underwriting.

Want a tighter estimate? We can usually narrow your range quickly with a few basics (revenue, industry, board/investors, and claim history).

 

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What factors drive D&O premiums in Dallas?

Underwriters typically look at:

• Company size & revenue: More activity = more opportunities for disputes.

• Industry risk: Regulated or litigation-heavy industries can pay more.

• Financial strength: Stronger financials can help.

• Claims history: Prior lawsuits, regulatory actions, or known circumstances raise red flags.

• Leadership structure: Board size, outside directors, governance processes.

• Limits & retention: Higher limits and lower retention usually cost more.

• Coverage scope: Side A only vs. full ABC program, entity coverage, and key endorsements.

A simple way to think about it:
The more stakeholders you answer to (investors, lenders, employees, donors, regulators), the more important D&O becomes - and the more the details affect pricing.

 

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Why D&O insurance matters for Dallas businesses

D&O isn’t just a “nice to have.” It’s often what keeps leadership decisions from turning into personal financial exposure.

D&O can help:

• Protect directors and officers from the cost of covered lawsuits

• Cover legal defense costs (often the biggest expense)

• Support recruiting qualified leadership and board members

• Improve confidence with investors, lenders, and partners

Not every dispute becomes a claim - but when it does, the legal spend can add up fast.

 

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Side A vs Side B vs Side C: what’s the difference?

Most D&O policies are built around three “sides.” Here’s the plain-English version:

Side A (individual protection)

Protects directors and officers when the company can’t indemnify them (for example, bankruptcy or certain legal restrictions). This is the “personal safety net.”

Side B (company reimbursement)

Reimburses the company when it does indemnify directors and officers.

Side C (entity coverage)

Often covers the company itself for certain claims (commonly securities-related claims for public companies). For private companies, Side C can vary - policy wording matters.

Why it matters: Two D&O policies can look similar on paper but respond very differently during a real claim. That’s why we compare coverage language - not just price.

 

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Is D&O insurance required in Texas?

Usually, no. D&O isn’t legally required for most private businesses in Texas.

But in the real world, it’s often expected when you have:

• Investors (VC/PE)

• A formal board of directors

• Outside lenders, larger contracts, or higher oversight

So it may not be “required by law,” but it can be required by your situation.

 

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One detail many Dallas businesses miss: D&O is usually claims-made

Most D&O policies are written on a claims-made basis. That means the policy typically responds when the claim is made and reported while the policy is active, not when the event happened.

Two terms to watch:

• Prior acts / retroactive date: the “start line” for covered wrongful acts

• Continuity: keeping coverage in force helps avoid gaps

If you’ve switched carriers, started coverage late, or had a lapse, this is worth reviewing carefully.

 

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Who needs D&O most in Dallas/DFW?

D&O is often a strong fit if your organization has:

• Owners/leaders making high-stakes decisions

• Investors, lenders, or outside funding

• A board, outside directors, or formal governance

• Members, donors, grantors, or regulators (common with nonprofits)

Even when leadership does everything right, allegations can still happen — and defense costs can be significant.

 

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Industry-specific considerations in Dallas

Dallas/DFW is diverse — and certain industries tend to see more scrutiny:

• Tech & data-driven businesses: Often benefit from pairing D&O with cyber coverage (different policy, different purpose).

• Healthcare and professional services: Higher exposure to regulatory and professional allegations.

• Financial and other regulated businesses: Compliance pressures can increase claim frequency and underwriting requirements.

The key is building coverage that matches what you actually do - not a generic template.

 

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How to find affordable D&O insurance in Dallas (without cutting corners)

Here’s how to keep pricing competitive and protect leadership properly:

1. Start with limits that match your risk (not just the cheapest quote)

2. Choose a retention you could realistically pay if a claim hits

3. Compare carriers and policy wording

4. Avoid gaps (claims-made details matter)

As an independent agency, we’ll walk you through the tradeoffs in plain English so you can make a confident decision.

 

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What we’ll ask for to quote D&O (so you’re prepared)

To move quickly, most carriers will ask for:

• Business name, location(s), and what you do

• Revenue + ownership structure (and whether you have investors)

• Board details (if applicable)

• Prior claims or known circumstances

• Financials (sometimes, depending on size)

• Desired limit ($1M, $2M, $5M+) + preferred retention

If you’re unsure on limits, we’ll help you size them based on your real-world exposure.

 

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FAQs about D&O insurance in Dallas

• Does D&O cover legal defense costs?

Often yes — and defense is frequently the biggest cost driver — but it depends on policy wording and the allegation.

• What’s the difference between D&O and general liability?

General liability is typically about third-party bodily injury/property damage. D&O is about leadership decisions and management-related allegations.

• What’s the difference between D&O and EPLI?

EPLI is for employment-related claims (harassment, discrimination, wrongful termination). D&O is for leadership decisions and fiduciary allegations. They can overlap in real life, but they’re different policies.

• Can a small business or startup get D&O in Dallas?

Yes. Many startups buy D&O when they add investors, a board, or larger contracts.

• How do I know what limit I need?

A common starting point is $1M, but the right answer depends on contracts, investors/lenders, industry, and what’s at stake. We’ll help you choose limits that fit your situation.

 

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Ready to protect your leadership?

If you’re making decisions that could be challenged - especially with investors, lenders, donors, members, or a board involved - D&O is worth getting right.

Call (972) 991-9100 or request a quote with Thumann Insurance Agency. We’ll help you compare coverage, explain the fine print, and move quickly when you need proof of insurance.