Personal and Corporate Assets
Commercial operations regularly expose management and employees to personal liability arising out of their activities on behalf of an organization. As a result products have been developed to respond to these unique needs:
Directors and Officers Liability / Management Liability
Covering the personal and corporate liability for allegations of wrongful acts, Directors of Officers Liability provides critical protection for individual managers as well as the company balance sheet. Privately held companies are at an ever increasing risk of litigation arising out of soured strategic partnerships, disgruntled employees, governmental oversight, environmental concerns and other corporate governance issues. Public companies add shareholder risk and market volatility to an ever increasing list of possible sources of litigation.
D&O underwriters are looking closely at company finances, management experience and strong risk control and corporate governance issues. Accordingly, we use our extensive expertise and contacts to help our clients develop strategies that most effectively present their company information to underwriters.
Employment Practices Liability
Employment Practices Liability insurance is an important piece of a complete management liability program, addressing the needs of employers to protect themselves from allegations of harassment, discrimination and other unfair labor practices. Many Employment Practices programs provide employers access to training and labor attorney’s to provide advice and counsel during the period the policy is in force.
For private companies, this Employment Practices claims are the most likely source of management liability litigation. As a result, this coverage is often included with the Directors and Officers liability. When combined with the D&O, these limits can be shared or each can have a separate set of limits.
Under ERISA, anyone who is involved in the administration of a firm’s 401(k) plan is personally liable for these activities. The term administration is defined broadly enough to include anyone involved, from the selection of the administrator to the payroll clerk who transfers funds into the employee accounts. A Fiduciary Liability policy is purchased by the business to address these personal liabilities.