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The complex management exposures of any company require an experienced insurance professional to properly assess the risk and obtain the appropriate coverage. In today’s litigious environment, it is imperative that companies protect themselves against the significant financial impact that litigation can have on the financial future long-term viability of a corporation, whether a multinational publicly-traded company, privately-owned start up or non-profit entity.
Listed below are highlights of the portfolio of products available to protect both individual executives and corporations.
Directors & Officers
D&O insurance protects both the company and the personal assets of individual directors and officers in the event they are sued over the performance of their company related duties. Company executives may be personally liable for the decisions they make, potentially resulting in devastating damages and expenses. Typical sources of claims include shareholders, customers, suppliers, regulators, and competitors.
Employment Practices Liability
Employment practices liability (EPL) insurance provides coverage to individual employees and the corporation for wrongful employment practices claims. EPL coverage protects companies from claims brought by current and former employees, as well as applicants for employment, and extends to claims brought due to violations of state and federal regulations, such as the Americans with Disabilities Act and the Civil Rights Act. Employment Practices Wrongful Acts include the following:
• Failure to promote
• Wrongful termination
• Wrongful refusal to employ
• Sexual harassment
• Discrimination for: race, color, creed, national origin, marital status, medical
condition, gender, age, physical appearance, physical and/or mental impairments,
pregnancy or sexual preference/orientation
• Defamation of character
• Invasion of privacy
• Wrongful deprivation of career opportunity
• Wrongful discipline
• Emotional distress
• Misrepresentation
• Breach of implied contract
EPL coverage can be purchased on a stand-alone basis or along with a Directors & Officers Liability policy, and is available to both private and public corporations worldwide.
Fiduciary Liability
The Employment Retirement Income Security Act (ERISA) requires that a fiduciary of an employee benefit plan act solely in the best interest of participants and beneficiaries. Fiduciaries can be held personally liable for any breach of their responsibilities. Claims can be brought by plan participants, participants’ legal estates, the Department of Labor, and the Pension Benefit Guaranty Corporation. Such claims may include allegations of:
• Improper advice or disclosure
• Inappropriate selection of advisors or service providers
• Imprudent investments
• Lack of investment diversity
• Breach of responsibilities or fiduciary duties imposed by ERISA
• Negligence in the administration of a plan
• Conflict of interest with regard to investments
Most standard D&O policies exclude fiduciary liability exposures as well as those exposures pertaining to the Employee Retirement Income Security Act., so separate coverage is required to address these exposures. |
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Publicly-Traded Companies
Whether traded in the U.S. or a foreign stock exchange, we will design a D&O program to best protect your company and its past, present and future directors and officers. Coverage can be provided for the exposures related to the company’s IPO as well as secondary offerings.
Private Companies
Howden works with a number of insurers who have designed D&O policies to meet the specific needs of private corporations domiciled inside or outside North America.
Non-Profit Companies
Directors and officers of non-profit organizations are often more at personal risk for D&O suits since the company may not have the funds to provide indemnification for the cost of defense or settlements that may arise from a suit.
Crime
Crime insurance covers theft, burglary, and robbery of money, securities, stock, and fixtures from employees and outsiders.
Kidnap & Ransom
Kidnapping and ransoming are real dangers for companies operating both overseas and in domestic markets. Kidnap & Ransom insurance provides coverage for kidnappings and other events through a combination of financial indemnification and expert crisis management. A basic policy can cover items such as ransom payment, loss of income, interest on bank loans, and medical/psychiatric care. Kidnap & Ransom insurance covers named employees for individual or aggregate amounts, with deductibles requiring the insured to participate in about 10% of any loss.
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