Management & Professional Liability

There are many possible scenarios that can suddenly upset an otherwise smoothly running business. Do you have sufficient assets to pay such a loss? And, if you do, should they be used that way? 

At Towne Insurance, we recommend a suite of Management Liability including Professional Liability to meet the needs and defend your company's financial exposures including:

Directors, Officers and Corporate Liability 
Protects corporate officers and directors against claims brought by shareholders, employees, consumers, clients, or businesses because of wrongful acts committed in the course of their executive duties. This coverage may be needed by directors and officers of private and public for-profit and non-profit organizations.

As if trying economic times weren’t enough, the current business environment is producing record numbers of liability claims against directors and officers.  How would this kind of litigation affect your revenue? How about your reputation?

Employment Practices Liability 
Protects the business from claims brought by employees (first party) covering wrongful acts arising from the employment process such as: 
  • Wrongful termination
  • Discrimination
  • Sexual harassment
  • Retaliation
  • Wage and hour claims
  • Other types of inappropriate workplace conduct
Fiduciary Liability 
Fiduciary Liability protects trustees, employers, fiduciaries, professional administrators and a retirement plan from claims for monetary or, in some cases, nonmonetary relief. Imposed by the Employee Retirement Income Security Act (ERISA).

Example: Participants in a 401(k) plan sue the plan's administrator, the plan and the sponsor for violating the terms of the trust agreement and causing a significant loss of the plan assets. 

Crime Insurance
Depending on the policy you purchase, Crime Insurance may protect your business for loss due to: 

  • Employee theft of money, securities, or property
  • Forgery and Alteration of checks, bank drafts, and other financial instruments
  • Robbery
  • Funds Transfer Fraud
  • Kidnap/Ransom and Extortion
  • Additional coverage may be available

Professional Liability
Professional liability can protect your business from damages and lawsuits associated with errors, omission, misrepresentation of facts, nondisclosure, or negligence in providing a service.Typically, this coverage saves you from funding your own defense against claims and payment of judgments against you, up to the limit of the policy. 

The amount of professional liability insurance you will need and how much it will cost depends upon the size of your business and the level of risk it poses.

There are two types of professional liability polices: claims-made and occurrence. Many professional liability policies are “claims-made,” meaning that the policy must be in effect both: 

  1. When the event took place and 
  2. When a lawsuit is filed for a claim to be paid. 
If, however, you change careers or retire, you may want to purchase an “occurrence” policy that will cover any claim for an event that took place during the period of coverage—even if the suit is filed after the policy lapses.

We will be glad to discuss this valuable coverage with you so you can better understand some of the serious exposures and vulnerabilities your business faces and help you tailor a program to meet these business threats.