Directors and Officers (D&O) Insurance

Product Summary

Directors and Officers Liability (D&O) insurance is also referred to as Management Liability.  The product covers the company and the individual directors and officers for any liability resulting from management of the company.  This could be a shareholder action for breach of fiduciary duty, an employment practices claim for wrongful termination or discrimination, or a claim brought by a creditor alleging misrepresentation.  Below is a list of specific areas of D&O in which ProWriters focuses:

D&O

If you are a private company or not for profit company, D&O liability is a serious exposure that needs to be carefully managed.  We can work with you to address the exposures and provide leading edge coverage.

Employed Lawyers

If you have internal counsel, they may request that you carry this coverage for them to provide the services you require, as opposed to using outside counsel.  This does not prevent a third party from bringing a claim against your company and that is where this coverage steps in.

Employment Practices

Employment Practices Liability Insurance (EPLI) may seem like a discretionary purchase, but the claims in this space can be extremely costly, even for a small business.  Claims may include wrongful termination, harassment, discrimination, or failure to pay overtime wages where due.  These exposures can turn into large claims, even if it is just defense of an unjust claim, the costs can run high.  Many insurers have stopped offering wage and hour coverage due to the claims, but we can help you find the markets that do offer the coverage.  Contact our specialist Alain Lengele at alain.lengele@prowritersins.com

Fidelity Bond / Crime

Fidelity Bond or Crime insurance can be an important part of your Management Liability Insurance program and may be purchased as a stand-alone product.  Crime coverage can cover you for:

Employee theft, theft of Clients’ Property, computer and fund transfer fraud, as well as forgery of checks and credit cards.  Fraud losses can occur over a long period of time and can easily be missed.

Fiduciary Liability

If you have a client who offers an employee benefit plan, they have a Fiduciary Liability exposure.  Claims can arise out of the management of these plans related to alleged improper investment or insufficient funding.

Kidnap & Ransom

Kidnap & Ransom (K&R) coverage is in higher demand than it used to be.  In this day and age, there are a variety of coverage options that can be provided via a K&R program as an additional coverage within your D&O program or on a stand-alone basis.  Whether you are a corporation, with employees traveling outside of the U.S., a high net worth individual, a school or university (for on campus coverage or off campus travel including overseas travel, a hospital, or a religious institution) K&R insurance can be a necessity.  This coverage extends to threats, not just the traditional kidnap or ransom event, providing protection from disgruntled employees, a student making a threat, or a threat from a third party.

Many clients do not realize they have exposure or they do not realize the full extent of the exposure.  K&R insurance can be a very cost effective way to limit the exposure and help protect them from a D&O exposure.