What is Employment Practices Liability (EPL) Coverage?
EPL protects the company against damages for events relating to their workforce, including but not limited to; wrongful terminations, harassment, discrimination, defamation and unfair hiring/firing practices; and
Provide defense costs associated with responding to employment related lawsuits.
What is D&O Liability Coverage?
D&O is written to:
Protect the personal assets of a company’s directors and officers; protect the company’s assets; Provide reimbursement to the organization to indemnify D&O’s for their losses; and helps the company monitor and provide defense costs associated with responding to lawsuits and investigations.
What is Fiduciary Liability Coverage?
Fiduciary Liability protects the plan fiduciary in the event that they breach their duties under ERISA.
Please complete the following form to obtain a quote for your desired coverage:
Why Private Companies Should Consider Buying D&O Liability Coverage
Cost of defending corporate lawsuits may exceed the net worth of most private companies; Judgments can be financially crippling; corporate indemnification may not be available; adverse shareholders and other potential claimants may exist;
Bad business decisions are likely to be more visible due to small business environment thus attracting the attention of shareholders, regulators and others;
What are the Sources of D&O Claims?
Shareholders, Investors, Partners and Members:
|– Merger / Acquisitions||– Conflict of interest|
|– Financial performance||– Bankruptcy|
|– Executive compensation||– Inadequate / Inaccurate disclosure|
|– Stock or other offerings||– Financial reporting|
Customers, clients and consumer groups:
|– Extension, refusal of credit||– Restraint of trade|
|– Debt collection||– Dishonesty|
|– Deceptive trade practices||– Cost, quality of product or service|
|– Contract dispute||– Lender liability|
Other third party claims against Directors and Officers (including competitors)
|– Anti-trust||– Prospective company acquisition|
|– Copyright / patent infringement||– Company defamation|
|– Business interference||– Tax issues|
|– Competitor disputes||– Regulatory / other government issues|
D&O Claims arise from:
Hiring/Firing Practices/Creditor Claims/Class Action Complaints/Conspiracy & Negligence/Disputer over Inventorship/
Competitor Disputes/Shareholders/ Misappropriation of Trade Secrets/Breach of Investment Agreement/Shareholder Derivative Action/Breach of Fiduciary Duty/Misrepresentation/Deceptive Trade Practices/Price Fixing/Inaccurate Disclosure/Inadequate Financial Reporting/Loan Default/Foreclosure/Unfair Competition
Duties of Directors and Officers:
Directors and officers are expected to perform their duties in good faith and at a level of professionalism they reasonably believe to be in the interest of the corporation and with the care that a reasonably prudent person in a similar situation would use under similar circumstances.
Why Private Companies Should Consider Buying EPL Liability Coverage?
Employers are facing increasing legal obligations while managing their workforces; Increased awareness and visibility of employment related lawsuits; Settlements can have a significant impact on the company’s financial stability; Cost to defend against employment suits is high regardless of the outcome; An employment lawsuit, if not handled properly, can cause irreparable harm to a company’s reputation; Lawsuits based on language in employee handbooks and other written policies and procedures are increasingly common; Compliance with laws in the workplace is costly, requires expertise, monitoring and training; and Commercial General Liability policies are not adequate to respond to EPL Matters.
Sources of EPL Claims:
Race and Sex Discrimination
Employees, former employees and employment applicants:
|– Wrongful termination||– Discharge in Violation of Public Policy|
|– Invasion of Privacy||– Assault and Battery|
|– Emotional Distress||– Harassment / Discrimination|
|– Breach of contract||– Defamation|
Regulatory Violations and Government Investigations:
|– Equal Employment Opportunity Commission (EEOC)||– Equal Pay Act (EPA)|
|– Department of Labor (DOL)||– Title VII|
|– Age Discrimination in Employment Act (ADEA)||– Americans with Disabilities Act (ADA)|
|– Fair Labor Standards Act (FLSA)||– Family Medical Leave Act (FMLA)|
Federal, State, City and County Statutes
Customers, clients and consumer groups
EPL Claims arise from:
Retaliation/False Representations/Intentional Misrepresentation/Wrongful Termination/Sexual Harassment/Wrongful Termination in Violation of Public Policy/Discrimination/Illegal Employment Practices/Defamation/Hostile Work Environment
Sources of Fiduciary Liability Claims:
ERISA violations/Conflict of interest in investment of plan assets/Imprudent investment decisions/Inappropriate loans using plan assets/Improperly advising plan participants/Mishandling of funds/Inaccurate year-end reporting/Delinquent employer contributions.