Public companies, regardless of size, nature of business, or stock exchange,
face claims from shareholders, competitors, customers, suppliers, creditors,
and the federal government. To help safeguard against such claims the ELD
offers the Directors' and Officers' (D&O) Insured Entity and Employment
Practices Liability Insurance Policy, also known as ExecPro Management and
Corporate Liability Protection. With $25 million in available capacity on
a primary or excess basis, the ELD can customize a policy to fit the differing
needs of public companies. Better still, there are very few excluded classes
of business.
The ELD has experience in underwriting a wide variety of industry exposures,
including the following:
- Retail operations
- Bio-tech and high tech firms
- Manufacturing
- Telecommunications
- Commercial and industrial firms
- Financially distressed companies
- Service operations
- IPO's
- Utilities
- Mergers/Acquistions
- Insurance Organizations
Coverage benefits include:
- Automatic subsidiary coverage for entities with less than 25% of the parent
company's assets
- Broad definition of securities claim, which includes civil lawsuit or criminal
proceeding brought by the Securities and Exchange Commission
- Automatic coverage for directors' and officers' service to non-profit entities
- Broad definition of claim includes written demand for monetary or non-monetary
relief
- Coverage for all past, present, and future directors and officers as well
as employees of the company
- Punitive Damages - Our definition of "loss" includes punitive or exemplary
damages, the multiple portion of any multiplied damage award in any claim, if
such damages are insurable under law and includes most favored venue wording.
This broadening feature does not contain sublimits or coinsurance.
- Final Adjudications wording for fraud and personal profit exclusions
Optional coverages available via endorsement include:
- Outside Directorship Liability – For for-profit entities
- Securities Underwriter Coverage – This enhancement amends the definition of director and officer for
securities claims to include the offering underwriter
- Selling Shareholder Coverage – This endorsement amends the definition of wrongful act to include any act
of any insured persons in their capacity as a selling shareholder in a public offering for a specified registration
statement
- Control Persons' Coverage – This enhancement amends the definition of director and officer for securities
claims to include any control person
- Investigative Costs Coverage – This option provides coverage for the costs associated with the investigation
of a shareholder derivative demand. There is no retention for this coverage.
- Fiduciary Liability Coverage – This optional coverage (available as an endorsement or as a stand-alone policy)
can protect insureds against claims for a wrongful act constituting a breach of fiduciary duty in the operation of
any plan of the company or in administration of any welfare benefit plans of the company
- Entity Employment Practices Liability Coverage – This optional coverage (available as an endorsement or as a
stand-alone policy) protects individual directors and officers, as well as the corporate entity itself, against
a variety of employment practices claims such as wrongful termination, harassment and discrimination.
- Order of Payments – This option provides for loss under policy to be first paid under Insuring Agreement A.
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