Management Liability

A Safety Net for Decision-Makers

At HWP, we understand that protecting your business and its leaders is paramount. A management liability policy provides four essential coverages: Directors & Officers Liability, Employment Practices Liability, Fiduciary Liability, and Crime. From employment-related claims alleging harassment or discrimination to theft of company assets, these coverages are designed to offer a wide range of protection for your company's leadership, providing peace of mind in today's dynamic business landscape.


D&O Insurance Coverage Details

Directors and Officers Insurance, commonly referred to as D&O Insurance, is a specialized liability insurance policy designed to protect the personal assets of individuals who serve as directors and officers of a corporation. The primary purpose of D&O insurance is to safeguard these leaders from personal financial loss in case they are sued for alleged wrongful acts committed while managing the company. D&O insurance is critical because, in today's litigious business environment, directors and officers can face personal liability for decisions made on behalf of the organization. These decisions may include strategic choices, financial decisions, compliance matters, employment practices, or issues related to corporate governance.

In today's business environment, leaders face legal responsibilities and potential liabilities. From breach of fiduciary duty to securities fraud, allegations can put directors and officers in difficult positions. HWP Insurance offers Directors and Officers (D&O) insurance tailored to their unique needs.

Directors and Officers (D&O) insurance offers comprehensive protection with three key coverage components:

  • This component provides crucial protection to individual directors and officers when the company cannot indemnify them. It covers legal expenses, settlements, and judgments, safeguarding their personal assets.

  • Side B coverage is designed to reimburse the company for indemnification payments made to directors and officers, helping the organization manage its financial responsibilities.

  • Also known as "entity coverage," this component is focused on shielding the company itself from certain claims, particularly those related to securities litigation, further bolstering your organization's resilience.

The policy extends its protective umbrella over a wide range of claims, including but not limited to allegations of:

  • Breach of fiduciary duty
  • Mismanagement
  • Securities fraud
  • Employment practices violations
  • Shareholder derivative actions

These coverage components ensure that your business and its leadership are prepared to address various legal challenges effectively. For a customized quote that suits your specific needs, reach out to HWP Insurance today.


Benefits and Beneficiaries

D&O insurance benefits not only individual directors and officers but also the organization as a whole.

For Directors and Officers

  • D&O insurance protects personal assets such as homes, savings, and other investments from potential litigation-related losses

  • Knowing that their personal assets are protected, directors and officers are more likely to take on leadership roles within an organization..

  • D&O insurance provides peace of mind to individuals in executive positions, allowing them to make important decisions without the constant fear of personal financial liability.

For Organizations

  • Offering D&O insurance can attract top-tier talent to serve as directors and officers.

  • Without D&O insurance, an organization could face severe financial challenges if its leaders are personally liable for litigation costs.

  • D&O insurance encourages a diverse range of individuals to join the board of directors or take on officer positions.


Employment Practices Liability

Employment Practices Liability Insurance protects organizations from claims made by employees, former employees or third parties alleging various employment-related and discrimination violations. These violations can include:

  • Claims of discrimination based on factors such as age, gender, race, religion, disability, or sexual orientation.

  • Claims of sexual harassment or hostile work environment.

  • Allegations of wrongful termination or wrongful discharge

  • Claims of retaliation against employees for reporting unlawful activities or exercising their legal rights.

Businesses of all sizes need EPLI insurance to protect themselves from the financial consequences of employment-related lawsuits. The policy can cover legal fees, settlements, and judgments associated with such claims, subject to the terms and conditions of the policy.

Fiduciary Liability

Fiduciary liability insurance, or ERISA insurance, is a type of insurance designed to protect individuals and organizations that serve in the capacity of a fiduciary. The coverage is critical for organizations that sponsor employee benefit plans, such as 401(k) plans, pension plans and other retirement savings programs governed by the Employee Retirement Income Security Act (ERISA). Trustees, plan administrators and investment managers have an exposure to financial losses and legal liabilities resulting from alleged breaches of their fiduciary duties.


Crime Coverage

Crime insurance, also known as fidelity insurance, is a type of insurance policy that provides coverage for financial losses resulting from criminal activities within an organization. It is designed to protect businesses and organizations from the financial consequences of various forms of employee dishonesty, fraud, theft, and other criminal acts that can occur.

Crime insurance typically provides the following protection against loss:

  • Protection against losses caused by employees stealing money or other property from the organization.

  • Losses resulting from the forgery or alteration of checks or other financial instruments.

  • Theft or disappearance of cash, checks, securities or other negotiable instruments.

  • Fraudulent electronic funds transfers, computer hacking or other cybercrimes.

  • Cybercrime that involves manipulating or deceiving individuals with the goal of stealing financial assets.

Crime insurance is essential for businesses to safeguard their financial interests and assets in the event of criminal activities within the organization. The specific coverage and policy terms can vary, so it's essential for organizations to carefully review their options and tailor their crime insurance policy to meet their unique needs.


Tools for Your Management Liability Needs

Our tools and services are designed to simplify the application process and provide risk management assistance.

  • We streamline the initial assessment with an online application process ensuring accuracy and efficiency.

  • Legal advice for employment related claims.

  • Access to online content and videos to assist with creating best practices procedures within your organization.

  • Detailed converge comparisons to help decide between various quotes.

  • Tool to help select your limit of insurance by comparing your organization to similar sized companies.

Protect your Business and Executive Team

We know that protecting your business assets is essential, which is why Management Liability coverages must be a part of your insurance portfolio. These coverages provide vital financial protection for the company and leadership team against potential legal and financial pitfalls that could arise from their decisions and actions while managing the business.

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