Insuring Businesses Differently

Every organization encounters unique financial and professional liability risks based on its industry type, size, workforce, and processes. However, there are several common risks across all sectors.

A rapidly growing risk impacting most industries is cybersecurity. The increasing dependence on evolving technology and digital data has made destructive, high-profile breaches and attacks a frequent occurrence globally. Many companies' cybersecurity teams and business leaders struggle to stay ahead of emerging threats, often resorting to reactionary measures to address crisis situations.

Other financial and professional liability risks include white-collar crimes, everyday business and transactional errors, stock market volatility, failure to comply with increasingly stringent industry regulatory standards, and instances of sexual harassment. Furthermore, there is the severe risk of employee kidnapping and ransom.

Addressing the financial consequences of these risks can be achieved through a comprehensive financial and professional liability insurance and risk management plan, developed with the assistance of trusted advisors.

Organizations today face numerous risks that necessitate financial and professional liability insurance and strategic risk management plans. Common risks include data breaches, cybersecurity, intellectual property issues, jurisdictional challenges, directors' and officers' conduct, professional services, employment practices, and mergers and acquisitions. Without proper insurance and risk strategies, companies may suffer significant financial and reputational damage.

Our data-driven FINPRO specialists can help you identify and manage these risks, enabling you to make informed decisions and strengthen your business resilience.

Management liability insurance includes coverage for financial losses due to legal defense costs, judgments, or settlements from lawsuits. This type of insurance covers directors and officers liability, employment practices liability (EPL or EPLI), fiduciary liability, crime, and kidnap and ransom. It is intended to assist public, private, and nonprofit organizations in managing various legal risks that may arise from everyday management activities.

D&O insurance safeguards a company's directors and officers from claims of wrongdoing in their managerial roles. It is crucial when the company cannot or will not indemnify them, which often occurs during derivative litigation or insolvency. This insurance covers their personal assets, paying for defense costs and any settlements or judgments they owe.

A fiduciary is an individual responsible for managing investments, such as a pension fund manager. Fiduciary liability insurance provides coverage for the personal assets of fiduciaries and trustees against defense costs and penalties in the event they are sued for decisions made on behalf of an employee benefits plan or other investors.

Errors and omissions (E&O) liability exposure is often overlooked in business. E&O refers to an actual or alleged act, error, omission, misstatement, misleading statement, or breach of fiduciary duty or other duty committed when providing or failing to provide professional services.

Consider obtaining errors and omissions insurance if you:

• Provide a service for a fee, particularly in legal services, accountants or physicians.
• Offer installation, integration, support, maintenance, or related services.
• Manufacture, distribute, or sell cosmeceuticals, medical devices, hardware, software and/or components.
• Develop, publish, broadcast, or distribute content, regardless of whether you charge for it.