|Directors & Officers Insurance|
The world is a risky place for directors & officers.
Is your company’s Management Liability coverage adequate?
An effective Management Liability Insurance program addresses a number of critical risks:
Directors & Officers Liability
Directors and Officers Liability Insurance (D&O) protects your directors and officers, or the corporation itself, from the expense of defending against lawsuits alleging wrongful acts arising out of the management of the corporate entity.
While a corporation typically indemnifies its directors and officers, D&O insurance is designed to reimburse the cost of that indemnification. Policies also cover costs for liabilities which aren’t specifically indemnified by the corporation, or when costs exceed the corporation’s resources. This protects the personal assets of directors and officers.
D&O coverage is not just for public companies. Common allegations against directors and officers of private companies include disputes stemming from mergers, acquisitions and divestitures, trade secret and intellectual property disputes, and hiring top talent from competitors.
Employment Practices Liability
Lawsuits from employees alleging discrimination, harassment and similar unfair treatment constitutes one of the most serious and common risks faced by management of private as well as publicly traded companies. A properly structured Employment Practices Liability Insurance program will let management know their personal assets are well protected. Appropriate care should be taken to integrate this coverage with the firm’s D&O Liability Insurance and overall Management Liability Insurance program.
Fiduciary Liability Insurance
Federal “ERISA” law makes trustees of employee benefit plans personally liable for losses attributable to their alleged breach of fiduciary duties. If the duty to act in the best interests of plan participants is breached whether intentionally or not, plan trustees (‘fiduciaries’) are in the crosshairs. Defense and settlement of resulting lawsuits can run into millions of dollars. Lawsuits can come from past or present employees as well as the U.S. Department of Labor. Trustees are often unaware of how at risk they really are. Fortunately, we can help with cost-effective Fiduciary Liability protection as part of an overall Management Liability Insurance program.
Management Liability insurance coverage can be complicated; there is no “standard” policy. And just getting a “D&O” policy doesn’t properly protect the firm or its valuable managerial talent. It is important to choose an experienced insurance broker that understands your business and the range of potential policies available. We’ve been providing Management Liability Insurance advice to clients for as long as Management Liability Insurance has been around. We are your trusted source for sound protection.
Not all insurance is the same. Not all insurance brokers are the same.
For precise, carefully selected Management Liability insurance coverage for your business, call the John L. Vorbach Company today at 212-294-4900.