Quest News™

March 6, 2018

Executive Risk Coverage


It is a known fact that employees are a company’s greatest asset, and you want to protect them. You may already have health insurance and worker’s compensation coverage, but could there be other situations that you may have not considered? What if a lawsuit was brought against one of your directors because of a public comment? What if your employee was kidnapped while he was going to a business meeting abroad? What if a tenured employee was caught with counterfeit checks? Executive Risk Insurance provides coverage for these scenarios. This policy is designed to protect your company and its leaders.

  • Directors and Officers Liability (D&O). Directors and officers have a duty to conduct themselves in the best interest of their stakeholders and are held accountable for their actions. Because of this lofty obligation, they can be sued for wrongful conduct based on their actions and comments when they are acting on behalf of the company. Investors, customers, employees, and competitors can file a lawsuit for negligence, misrepresentation, and breach of duty. D&O protects the personal assets of the directors and officers and the financial well-being of the company. The policy pays attorneys’ fees, court costs and filing fees for or on behalf of directors, officers, and the company. It may also include investigation and specialist fees for covered claims. Additionally, to protect themselves, directors may demand that companies obtain D&O coverage before agreeing to be on their corporate board.
  • Kidnap, Ransom, and Extortion. International expansion provides a vast opportunity for more sales and growth. This requires the hard work and dedication of someone chartering the territory or establishing a new office. International trips are required to meet with vendors and clients. A new environment, especially one in a foreign country with economic instability and political unrest, brings greater risk such as kidnap, extortion, and unlawful detention. If the unthinkable happens and an employee is kidnapped, you will want someone to turn to.
  • Crime. Businesses operate on trust, including the trust that is extended to our workforce. Unfortunately, sometimes that trust is betrayed and a crime is committed. Offenses can range from petty theft to embezzlement that continued for years. Crime insurance provides protection against employee theft, embezzlement, depositor’s forgery, credit card forgery, counterfeit paper currency, and counterfeit checks. Coverage includes the reimbursement of loss of money, securities, or other assets.

Unanticipated events, such as lawsuits against your director, kidnapping of your officer, and theft by your employee, can cost millions of dollars. How will this impact your organization, and will you be able to withstand the burden? Mitigate these risks with an Executive Risk policy. This comprehensive coverage can be customized to meet the needs of your company. For more information about Avalon Risk Management’s Executive Risk Coverage, visit our product page. Coverage options can vary with the market, so contact your local representative for details.

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