Protect Your Executives with the Right Coverage

Eliminating and minimizing risks is necessary for any business whether for-profit or non-profit, small or large, privately held or publicly traded. Executive protection insurance is one way to minimize the risks associated with having an executive team.

Employment Practices Liability

Applicants, current and former employees may sue the company over employment practices. In fact, these types of cases are more common than those for commercial property. Hostile work environments, discrimination, wrongful termination, retaliation, and harassment are common reasons for an employment practices claim against an executive or the business at large.

Business Crime

Dishonest acts, embezzlement, forgery, check tampering and cyber crimes are on the rise in small and medium-sized businesses. Commercial property insurance policies don’t often cover these risks. Moody Insurance suggests that you can protect the money and time spent growing your business with appropriate insurance coverage.

Directors & Officers Liability

Competitors, customers, regulators, creditors and suppliers/vendors may sue the executive team for a variety of things including unfair trade practices. General liability, commercial property and umbrella policies may not cover these types of liabilities.
Protect the investment in your company with executive protection insurance. The managerial team may add different exposures as they lead your company into the future. A little protection now helps stave off financial loss later on.

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How To Protect Your Executives

When you offer goods or services to consumers, there is always the possibility of liability. The people in your company who make major decisions are often under the greatest scrutiny. You need an executive protection plan that protects them. Moody Insurance recommends liability coverage specifically designed to handle the legal fees of those who are in charge. Your company may have a choice between a policy with a duty-to-defend option or reimbursement.

Duty To Defend

The D&O coverage of many small companies falls under a duty to defend. The contract obligates the carrier to cover certain expenses:

Attorney fees
Court costs
Settlements

Once the total cost is known, the carrier can bill the clients for the portion for which they are responsible.

Reimbursement

Coverage that is offered on a reimbursement basis can give larger companies or those that are publicly traded a little more freedom. The carrier has the right to address every claim but is not obligated to do so. Therefore, the client may be able to handle smaller or more frivolous matters in house rather than involve the insurance company.

Regardless of which option works best for your company, it is in your best interest to purchase a plan that protects your top executives. Such a plan empowers them to make strong decisions, knowing that the company has their back.

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