Management Liability Insurance
Most insurance agencies have little knowledge regarding management liability coverages such as Directors & Officers Insurance, Cyber Liability, and Errors & Omissions. They can access few, if any, carrier markets directly. Churchwell Insurance Agency is set apart in that we have a dedicated team of specialists with access to all the markets in U.S., Bermuda, London, and even Hong Kong. We are truly set apart as a global advisor in the management liability market.
EXECUTIVE LIABILITY ADVISORS
Directors & Officers
Most insurance agencies have little understanding of how Directors & Officers Insurance works and access to few, if any, carrier markets. Churchwell Insurance Agency is set apart in that we have a dedicated team of specialists with access to all the markets in U.S., Bermuda, London, and even Hong Kong. We are truly set apart as a global advisor in the D&O market. Did you know that D&O insurance can protect your business in the event of a lawsuit? It is important to discuss what D&O insurance is and why it is crucial for businesses. We'll discuss the different types of coverage available and how to choose the right policy for your company.
Cyber liability insurance is becoming increasingly important in today's digital world. Your company increasingly relies on technology to store and process sensitive information, making you more vulnerable to cyber attacks and data breaches. Cyber liability insurance can provide coverage for financial losses, legal fees, and other costs associated with such incidents. This type of insurance can help you mitigate the financial impact of a cyber attack and protect against potential lawsuits from affected customers or clients. As cyber attacks continue to grow in frequency and complexity, cyber liability insurance is becoming an essential component of any comprehensive risk management strategy.
Errors & Omissions
Errors and omissions insurance, also known as professional liability insurance, is necessary for professionals who provide advice, services, or expertise to clients. This type of insurance protects against claims of negligence, errors, or omissions that result in financial harm to clients. It covers legal fees, settlements, and judgments associated with such claims. Even the most experienced professionals can make mistakes, and errors and omissions insurance can provide peace of mind and financial protection in the event of a claim. Many industries, including healthcare, legal, and financial services, require professionals to carry this type of insurance as a condition of doing business.
What is D&O Insurance?
D&O insurance is designed to protect directors and officers of a company from being held liable for any wrongful or illegal actions they may have carried out in the course of their work. The insurance can also provide coverage for settlement costs or judgments awarded against the director or officer.
Why Is D&O Insurance Important?
If you're a business owner, you know that protecting your company is always a top priority. But what about protecting yourself? As a director or officer of your company, you can be held liable for any wrongful or illegal actions you take while in your role. That's why D&O insurance is so important. It can help cover legal defense costs, settlements, and judgments against you.
Who Needs D&O Insurance?
If you're a director or officer of a corporation, partnership, or LLC, then you need D&O insurance. This includes:
- Traditional IPO
- OTC Uplist
- Private for-profit
- Private non-profit
SPAC IPO and Traditional IPO companies especially need D&O insurance, as these types of entities have a higher risk for litigation from their shareholders. If you partner with Churchwell Insurance Agency, we can help you find the D&O insurance policy that's right for your business.
|Example 1: Ds and Os were sued by a minority shareholder in connection with a proposed M&A transaction alleging, among other things, selfdealing and fraud. Case was settled for $2.5M, inclusive of $750K for defense costs.||Result: although there is a fraud exclusion in every D&O policy, the carrier must respond until there is a final, non-appealable adjudication that the fraud actually occurred. As the case settled, the exclusion was never implicated. Insured received full recovery excess of the retention.|
|Example 2: Company and Ds and Os were sued for fraud, misrepresentation and breach of contract by various investors and vendors. Company ultimately filed for Chapter 11 protection.||Result: Case is ongoing but prior to the bankruptcy the carrier excluded the contract claims against the company under the contractual liability exclusion but did acknowledge defense for individuals. Policy had a $500K retention. Once the company filed for bankruptcy they were unable to continue indemnifying or advancing the individual defendants’ Defense Costs. The remaining $200K in the retention was waived for individuals (since it was now deemed a non-indemnified claim) and the carrier immediately started covering costs at that point.|
|Example 3: Company and Os were sued for unfair and deceptive business practices in a consumer class action. Case was ultimately dismissed but $850K in Defense Costs were incurred.||Result: Policy had an antitrust exclusion that included unfair and deceptive business practices allegations (which is common). The exclusion was limited to the Company and provided a $250K Defense Costs carve back or coverage grant. Negotiations over allocation began with a baseline of $250K via the Defense Costs carve back and final contributed amount was $650K.|
D&O insurance is an important type of coverage for any business owner or corporate executive. It can help protect you from being held liable for any wrongful or illegal actions you take while in your role.
If you're looking for D&O insurance, Churchwell Insurance Agency specializes in directors & officers insurance for publicly traded companies trading on U.S. stock exchanges regardless of operations being global or domestic. We have the experience and knowledge to help you find the right policy for your company. Give us a call today to learn more about what we can do for you.
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