Management Liability/Executive Risk
Executive Risk Policies provide essential individual protection for business owners, officers and managers, as well as the business entity.
Directors and Officers Liability: Directors and Officers are responsible for making important executive management decisions. Organizations include not-for-profit, publicly or privately held companies. Along with the responsibilities come liability exposures derived from the duties owed to the organization. Directors and Officers Liability Insurance provides certain protection when these duties are breached or allegedly breached and suits are filed against a director or an officer. Corporate/Entity Coverage usually defends the organization and pays settlements/judgments when a defendant is in managerial litigation.
There are three basic duties directors and officers owe the organization:
- Duty of Loyalty – duty to act in the best interest of the organization.
- Duty of Obedience – duty to conform to the company charter and bylaws.
- Duty of Diligence – duty to manage in a knowledgeable manner.
Employment Practices Liability: Coverage from claims arising from hiring and firing and personnel management practices of an organization. Sexual harassment, is just one of many types of claims against which an employment practice’s liability policy was intended to protect. Basic coverage provides broad protection from a variety of allegations made by employees against the organization such as wrongful termination, wrongful failure to hire, age discrimination, and violation of employment discrimination statutes. Most carriers also offer the option to add allegations made from non employed third parties.
Professional Liability/Errors & Omissions Insurance: In a broad sense, provides coverage for claims arising from services rendered for allegations whether groundless and false and otherwise, negligent acts, errors or negligent omissions including the failure to perform services to an expected standard of care in his or her specific profession.
Fiduciary Liability: Coverage for claims arising from the oversight and management of employee welfare and benefit plans. This includes and is not limited to healthcare plans, pension and profit sharing plans, 401K plans, etc. It’s important to note that the fiduciary’s personal assets are at risk for which this coverage applies.
Kidnap, Ransom & Extortion: Provides coverage for ransom and recovery for kidnap or extortion events. Coverage is especially important for high profile and affluent individuals, and those who travel outside the United States, especially in certain regions of the world.
Employed lawyer: Coverage for exposures arising from legal services rendered by the insured’s employed counsel. It’s important to point out that both the employer’s and the employed attorney’s personal assets are at risk.