- Full prior acts
- Entity and subsidiary coverage
- Employees and volunteers as insureds
- Wrongful termination, discrimination and sexual harassment coverage
- Spousal coverage
- Fiduciary Liability (Optional)
- Wrongful Third Party Discrimination (Optional)
- Defense costs in addition to policy limits
- $2,500 deductible
- $5,000,000 limits available
Directors and Officers Liability provides financial protection for the directors and officers of the company in the event they are sued in conjunction with the performance of their duties as they relate to the company. Directors and Officers Insurance can be thought of as a management Errors and Omissions policy. A company’s directors and officers can be sued over their management decisions by a whole host of constituents
Directors & Officers Liability claims generally come from stockholders, employees, and clients against the company, AND against the directors of the company. Since a director can be held personally responsible for acts of the company, most directors and officers need insurance protection rather than put their personal assets at stake.
Directors & Officers Liability Insurance often includes Employment Practices Liability and can sometimes include Fiduciary Liability. The former involves harassment and discrimination suits, and is where the majority of your exposure will be. Employment practices suits constitute the single largest area of claim activity under D&O policies. Over 50% of D&O claims are employment related.
Directors and Officers Insurance is often confused with Professional Liability. The two are not synonymous. Professional Liability is concerned with performance failures and negligence with respect to your services, not the performance and duties of management. Generally it is a good idea to carry both Directors and Officers Liability and Professional Liability insurance.
Today's litigious workplace and the advent of legislation, such as the Americans With Disabilities Act and the Family Medical Leave Act, have led to a marked increase in employment related claims and lawsuits. As the name implies, Employment Practices Liability Insurance (EPLI) provides broad insurance protection from such employment-related claims and lawsuits brought against a company, its managers and employees, and its directors and officers.
The following employment-related charges are typically among those actions covered by EPLI:
- Age, gender and other forms of discrimination
- Sexual harassment
- Wrongful discipline and termination
- Negligent hiring, promotion and compensation decisions
- Breach of employment contract
- Emotional distress/mental anguish
- Invasion of privacy
- Slander or libel
- Mismanagement of employee benefits