Corporate Coverages
Corporations, their Officers, and Board of Directors face a unique set of exposures in today’s litigious world. It is important to have an experienced broker guide you through the quoting and selection process since these policies can differ greatly from one another.
Directors and Officers (D&O)
Directors and Officers Liability Insurance (D&O) covers directors and officers of a company for negligent acts or omissions and for misleading statements that result in suits against the company. There are a variety of D&O coverages. Corporate reimbursement coverage indemnifies directors and officers of the organization. Side-A coverage provides D&O coverage for personal liability when directors and officers are not indemnified by the firm. Entity coverage provides coverage for claims made specifically against the company. D&O policies are generally combined with employment practices liability insurance to form a management liability policy.
Employment Practices Liability (EPLI)
Employment Practices Liability Insurance provides coverage to employers for wrongful termination, harassment, discrimination and other violations of employees’ legal rights which can lead to lawsuits. Third party coverage is also included to provide coverage to companies when non-employees bring similar claims. EPLI policies are generally combined with director and officers liability to form a management liability policy.
Commercial Crime
Crime Insurance provides coverage to an insured business for many types of criminal activity that can deprive its business of assets. Third party coverage can also be included to protect an insured business from criminal activity committed to third parties by its employees. A superior policy will contain the following:
- Coverage for Employee Theft, ERISA fidelity, Employee Theft of client property
- Coverage for Forgery or Alteration
- Coverage on Premises and in Transit
- Coverage for Money Orders and Counterfeit Money
- Coverage for Computer Fraud including Computer Program and Electronic Data Restoration Expense
- Coverage for Fraudulent Funds Transfer
- Coverage for Personal Accounts including Forgery or Alteration
Fiduciary Liability
It is the legal responsibility of a fiduciary to safeguard assets of beneficiaries. A fiduciary is required to manage investments held in trust in the best interest of beneficiaries. Fiduciary liability insurance covers breaches of fiduciary duty such as misleading statements, errors and omissions. Companies offering 401k’s and pensions plans have increasingly been held liable in courts when their fund managers have made errors and omissions or have been selected by the company without proper due diligence.
