Directors & Officers (D&O) and Employment Practices Liability (EPL) insurance, also called management liability, is not just for large and publicly traded businesses – small businesses need management liability coverages as well. Inc. notes some misperceptions about D&O (see here):
A business doesn't have to have shareholders in order for its directors and/or officers to be personally sued.
In small, private companies organized as sole proprietorships or partnerships, owners are individually liable for the decisions they make on behalf of their organizations.
The term management liability typically includes D&O, EPL, Crime, Fiduciary & Kidnap & Ransom (K&R) coverages. For smaller organizations, EPL is typically the driver and D&O is designed to protect the personal assets of Directors & Officers, but the other coverages are important as well. Pricing is based on size, type of organization, claim experience and location, and pricing is low for smaller organizations.
Management liability for smaller organizations can be hard to place, and hard to place accounts can include the following:
- New Organizations
- Claim Experience
- Unique Exposures
- Disciplinary Proceedings
Tennant Risk Services is a specialty wholesale broker and underwriting manager, and delivers expertise, markets and exemplary services to our retail insurance agent clients in the placement of professional liability insurance (E&O, D&O, EPL, Cyber). We excel at hard to place accounts.