Regardless of the size or type of business you are engaged in, you are each faced with many serious exposures in the course of your daily operations that may currently be either uninsured or underinsured. We believe Directors’ & Officers’ Liability and/or Employment Practices Liability Insurance should be included as a mandatory coverage in your insurance program.
A Commercial Company can be either publicly traded or privately held and is defined as an organization established for the purpose of making a profit on the sale of goods and/or services. The management decisions of an organization are usually entrusted to the corporation’s directors and officers. While the successes of the company can be attributed to these management decisions, so too are the failures. When poor corporate decisions are made, the corporation’s directors & officers are likely to attract the scrutiny of potential claimants such as shareholders, employees, customers & clients, debt holders, competitors and regulatory agencies. As a result, not only is the financial stability of the Company threatened, so too are the personal assets of the corporation’s directors and officers.
In the past, most claims for private companies stemmed from litigation by competitors or customers and clients. Over the past few years, the majority of claims against directors & officers for privately-held and closely-held companies have been in the Employment Related practices Area. Employment Practices Liability Insurance (EPLI) is a form of coverage designed to protect Employers and other Insured’s from loss arising out of any employment-related wrongdoing. Other Insured’s under an EPLI policy are, the actual Entity, employees, estates, heirs, executors and representatives. The most common example of EPLI type claims are allegations of discrimination, sexual harassment, wrongful termination, and common law torts such as defamation, emotional distress, mental anguish, invasion of privacy, negligent hiring, negligent supervision, wrongful discipline and wrongful deprivation of career opportunity.
We would be happy to review your company’s insurance program and give you a quotation on this important coverage.