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Please email us for applications for any combination of EPL, D&O, Fiduciary, and Crime insurance.
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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.
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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.
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What are the Sources of D&O Claims?
Shareholders, Investors, Partners and Members:
- Merger / Acquisitions
- Financial performance
- Executive compensation
- Stock or other offerings
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- Conflict of interest
- Bankruptcy
- Inadequate / Inaccurate disclosure
- Financial reporting
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Customers, clients and consumer groups:
- Extension, refusal of credit
- Debt collection
- Deceptive trade practices
- Contract dispute
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- Restraint of trade
- Dishonesty
- Cost, quality of product or service
- Lender liability
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Other third party claims against Directors and Officers (including competitors):
- Anti-trust
- Copyright / patent infringement
- Business interference
- Competitor disputes
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- Prospective company acquisition
- Company defamation
- Tax issues
- Regulatory / other government issues
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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.
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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.
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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
- Invasion of Privacy
- Emotional Distress
- Breach of contract
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- Discharge in Violation of Public Policy
- Assault and Battery
- Harassment / Discrimination
- Defamation
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Regulatory Violations and Government Investigations:
- Equal Employment Opportunity Commission (EEOC)
- Department of Labor (DOL)
- Age Discrimination in Employment Act (ADEA)
- Fair Labor Standards Act (FLSA)
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- Equal Pay Act (EPA)
- Title VII
- Americans with Disabilities Act (ADA)
- Family Medical Leave Act (FMLA)
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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.
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What is Fiduciary Liability Coverage?
Fiduciary Liability protects the plan fiduciary in the event that they breach their duties under ERISA.
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.
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