Executive Risk Liability
Executive Risk Liability is also known as Management Liability and this form of coverage provides a number of options to protect your company from management liability.
Options available include the following:
Directors & Officers Liability (D&O)
A D&O policy provides liability protection for directors and officers when claims are asserted for actual or alleged wrongful acts. The assets of the company/organization and the personal assets of the directors and officers are protected from the costs of litigation and any covered damages.
Employment Practices Liability (EPL)
The EPL policy covers defense expenses, settlements and damage awards resulting from employee lawsuits alleging discrimination, harassment, wrongful termination, and other employment related claims.
Individuals who administer employee benefit plans can be liable for a variety of reasons including the selection of plan investment options, monitoring those investments and educating employees of those options. Steps can be taken to reduce personal liability, such as hiring a competent team of experts, but ultimately the fiduciary remains responsible for the management and administration of the benefit plans.
Defending claims can be expensive and time consuming. According to a recent Fiduciary Liability Survey Report, the average cost of paid claims exceeds $1 million dollars. Defence costs made up a significant portion of overall fiduciary liability losses.
Kidnap & Ransom / Extortion (K&R)
This coverage helps businesses guard against the significant costs associated with kidnapping and extortion, threats of bodily harm, property damage, product contamination, launching a computer virus or divulging trade secrets.
This is especially needed for business doing business internationally. Even if no ransom is paid, expenses such as those from negotiators, attorneys and forensic analysts can have a significant impact on company balance sheets.