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Directors and Officers
Directors and Officers of all organizations face the potential for liability in the wake of bad outcomes. This is true from the smallest non-profit where donors can allege improper use of donated funds to the largest public company facing a shareholder class action. Despite good intentions, directors and officers may find themselves faced with using their own resources to fund litigation against them. A Directors and Officers Liability insurance product can both protect the personal assets of the individual directors and officers as well as offer protection to the balance sheet of the organization itself.

Directors and Officers Liability is a specialized product with dedicated underwriters. Each carrier has their own, custom policy form. In addition, decisions made at the various federal and state courts as well as at the Supreme Court can impact the availability of coverage or the applicability of law. Because the products are constantly evolving, it is important to engage an experienced, knowledgeable brokerage team.

Every company is different and every carrier offers a product with features that vary. Designing the right program requires an understanding of your organization and expertise of the Executive Liability team. Policy language is ever changing and an experienced team is vital to navigate the variety of options.

Private and non-profit entities alike face many of the same liabilities as their larger public company counterparts. We can help you understand the extent of your exposures and help you make an educated decision about purchasing an insurance product. Contact the Executive Liability team at Olympic Insurance Agency today to discuss the specific exposures of your company and the insurance solutions that are available. 		 

Every day, employees file suit against employers for sexual harassment, wrongful termination, discrimination or a host of other employment related torts. The EEOC continues to see an increase in the number of cases filed and no organization is immune. Companies who follow all the best practices in managing their employees can still find themselves facing liability for a rogue employee who harassed a peer. Regardless of the size of the organization, all companies can benefit from having a comprehensive Employment Practices Liability (EPL) insurance product in place.

Challenging economic conditions and their inevitable reductions in force are often triggers for claims. Companies may also find themselves alleged to have violated one of the many employee related legislative acts such as the Civil Rights Act of 1964 or the Amendments of 1991, the Family Medical Leave Act of 1993 or the American with Disabilities Act of 1990.

Aggressive action by the EEOC has increased the severity of a loss to an organization. In addition, large cases receiving high levels of publicity can trigger similar actions at other companies. Even when allegations have no merit, a suit can have a high financial cost, while causing serious damage to the reputation of your business.

Employment Practices Liability insurance provides defense costs as well as settlement or indemnity coverage for covered employment related torts. This insurance product can provide a risk transfer solution to help protect the company balance sheet when a claim occurs. 		 

Fiduciary Liability
ERISA (the Employee Retirement Income Security Act of 1974) permits individual trustees or fiduciaries of employee benefit plans (like a 401k plan) to be held personally liable in the event of a financial loss to an employee. Even when the trustees of the 401k plan have the best of intentions, errors can occur and litigation can result. Many factors, like stock market performance, are completely out of the control of the trustee or fiduciary, yet they can still be liable.

Fiduciary Liability insurance is available to provide defense costs as well as settlement or indemnity costs when a trustee or fiduciary is alleged to have committed an error, misstatement or simply is accused of neglect of his or her duties.

  Fiduciary liability is the ONLY insurance product that addresses the decisions and actions related to the management and administration of the employee benefit plans. ERISA requires the purchase of an ERISA bond or Fidelity bond and some insurers offer Employee Benefit Plan liability as a component of the commercial “package” insurance. Fiduciary liability insurance provides coverage that is not provided by either of these other products.

Public, private and non-profit entities all face potential liability if they offer any plan which is governed by ERISA. Defense costs coverage in a Fiduciary liability policy can be extremely valuable and these policies tend to have low deductibles. In some cases, first dollar coverage may even be available.