by Juliane Rees | Oct 2, 2023 | Industry News
By Greg Boornazian, Christie Vu, and Ben Young
High interest rates, rising bankruptcies and increased insurance claims highlight the importance for business owners and directors to secure comprehensive liability coverage. You want to work with an experienced team that offers tailored products, personalized service, and quick turnaround to safeguard businesses from a range of liabilities across various industries.
Directors and officers, as well as business owners and operators of private companies and nonprofits, are being challenged by an array of factors in the world today.
Current high interest rates are impacting the cash flow of small businesses and their ability to borrow,[1] and commercial bankruptcies increased by 19% from the first quarter of 2022 to 2023.[2] Bankruptcies often lead to more directors and officers (D&O) insurance claims, and it’s predicted that cyber and employment practices liability (EPL) claims will rise, too.[3]
These headwinds have led to higher premium costs for business owners, which increased 41% in 2020 and another 38% in 2021 alone.[4] D&O insurance rates have flattened across many standard industry classes for underwriters, but the healthcare, technology and consumer discretionary industries are likely to still pay the highest rates.[5]
With so many potential threats to your company’s success, it’s critical to work with an insurance company that understands your business and the D&O market. Understanding potential exposures, terms and conditions of the policy, and what is considered adequate limits based on each business’ unique risks and exposures, can mean the difference between a steady, growing business and a shaky one. Having the right partner is key.
4 characteristics to look for in an executive liability coverage team
Ideally, when selecting executive liability coverage, you’ll want a single carrier that can handle D&O and ancillary coverages for you to help minimize the potential for coverage gaps. It’s also important that the team exhibits the four main attributes listed below:
1. Experience. The team you choose should be seasoned, with years of experience in the executive liability space. Underwriting maturity is invaluable, as is product experience. The depth and breadth of a team’s experience make it easy for them to tailor the terms to your business, something large groups with inexperienced employees have a hard time doing. Ultimately, your company needs a carrier and an underwriter with a known and trusted name.
2. Flexibility. Because it’s not a given that your organization’s coverage will line up with your exposures, you need an insurer that can appropriately match your business with the proper coverage, regardless of the industry you’re in. You need a team who can tailor personalized coverage to ensure no gaps.
3. Service. As a company, you want a provider that can protect your team and assets and be available when you need it. You want to work with an in-house team that is dedicated to cultivating relationships and that can provide personalized, tailored service throughout the life cycle of a policy, from underwriting to claims.
4. Speed and limited distribution. You want to work with a team that has the personalized relationships and expertise that many automated quoting portals don’t have, but with individuals who can still match their turnaround times. You should expect a 24-hour turnaround from the time you submit an application for underwriting. Many insurance companies focus on the quantity of relationships they have, but quality is much more important.
Enter: Protector Plans Executive Liability Program
B&B Protector Plans’ Executive Liability Program provides coverage for all your business insurance needs. The program offers D&O liability, Employment Practices Liability, Fiduciary Liability, Employed Lawyers, Crime and Miscellaneous Professional Liability coverage for private and not-for-profit risks with up to $750 million in revenue and assets or 2,500 employees. Limits are up to $5 million per coverage section.
B&B Protector Plans has an AM Best Rating of A XV; policies include personalized, non-rescindable, duty to defend coverage. Coverage enhancements designed specifically for professional firms and healthcare are also available.
We cover dozens of industries with Executive Liability policies, including oil and gas, healthcare, hospitality/restaurants, technology, software, consulting, engineering, biotech/pharma and more. When it comes to Miscellaneous Professional Liability, we specialize in advertising services, event planner services, medical billers, printers, property management, travel agents and fulfillment firms.
For a full list of policy features and coverage appetite, and to submit, email executiveliabil[email protected]. Learn more about B&B Protector Plans on our website.
[1] Business News Daily “Interest Rate Increases: 4 Concerns for Small Businesses,” February 21, 2023.
[2] Epiq “Bankruptcy Filings Increase All Chapters in March; Commercial Filings Up 79 Percent Year-Over-Year,” April 3, 2023.
[3] Gallagher “Private and Nonprofit Directors and Officers Liability Insurance: A Transitioning Market,” February 2023.
[4] Risk Management “Boom or Bust: What’s in Store for the D&O Market in 2023?,” February 1, 2023.
[5] Insurance Business Magazine “Are D&O insurance rates “bottoming out” this year?,” June 7, 2023.
This information is intended for informational purposes only. Protector Plans Executive Liability is not liable for any loss or damage arising out of or in connection with the use of this information.
by Juliane Rees | Sep 19, 2023 | Industry News
Protector Plans Executive Liability has launched a primary product offering. The Protector Plans Executive Liability insurance program now offers D&O liability, employment practices liability, fiduciary liability, employed lawyers, crime and miscellaneous professional liability coverage for private and not-for-profit risks. Coverage is available for risks up to $750 million in revenue and assets or 2,500 employees with limits up to $5 million per coverage section.
Backed by an insurance carrier with an AM Best Rating of A XV, all coverage includes duty to defend, no hammer clause and non-rescindable coverage. Coverage enhancements designed specifically for professional firms and healthcare are also available.
Professional Plans Executive Liability supports dozens of industries, including oil and gas, healthcare, hospitality/restaurants, technology, software, consulting, engineering, biotech/pharma and more. When it comes to Miscellaneous Professional Liability, the program specializes in advertising services, event planning services, medical billers, printers, property management, travel agents and fulfillment firms.
Jeffrey S. Grange, president of Protector Plans’ Tampa Programs division, stated, “The addition of the primary product offering supports Protector Plans’ vision to be the leading preeminent full-service delegated underwriting platform for specialty lines in the MGA/MGU channel. We provideproprietary insurance products and solutionstailored to the risk management needs of ourcustomers as a talent-led organization committed to specialization.”
Working with the Protector Plans brands provides customers access to custom insurance solutions for commercial and retail products, extensive underwriting knowledge and fast quote turnaround. We work to simplify the insurance experience, build trust and reduce uncertainty. Protector Plans’ website will be updated regularly with news, blogs, business activity, new product offerings and events. For a full list of policy features and coverage appetite and to submit, email [email protected].
About Protector Plans Executive Liability/B&B Protector Plans
Protector Plans Executive Liability Program provides coverage for all your business insurance needs. The program offers D&O liability, Employment Practices Liability, Fiduciary Liability, Employed Lawyers, Crime and Miscellaneous Professional Liability coverage for private and not-for-profit risks with up to $750 million in revenue and assets or 2,500 employees. Limits are up to $5 million per coverage section.
Brown & Brown Protector Plans, Inc. (“Protector Plans”) is a national administrator of property and casualty insurance solutions whose reputation for innovation and customer service is based on a 40+ year history of meeting the complex insurance needs of professionals. Protector Plans’ fundamental distinction is grounded in insurance product innovation. Protector Plans is a wholly owned subsidiary of Brown & Brown, Inc.
About Brown & Brown, Inc.
Brown & Brown, Inc. (NYSE: BRO) is a leading insurance brokerage firm, delivering risk management solutions to individuals and businesses since 1939. With 15,000+ teammates in approximately 500 locations worldwide, we are committed to providing innovative strategies to help protect what our customers value most. For more information or to find an office near you, please visit bbinsurance.com.
Full Press Release: Protector Plans Executive Liability launches primary product offering (prweb.com)
by Juliane Rees | Aug 3, 2023 | Industry News
Just as important as professional liability coverage, EPLI protects a business against rising claims of discrimination, harassment, retaliation and wrongful termination.
By Ben Young, Christie Vu and Gregory Boornazian
An employer can do everything right and still be served an Equal Employment Opportunity Commission (EEOC) notice.
Alleged discrimination charges under Title VII of the Civil Rights Act of 1964 accounted for 61% of the EEOC cases filed in 2021.[1] Employment Practices Liability Insurance (EPLI) helps protect against liability from false allegations just as much as accurate ones. Claims that aren’t legitimate or don’t hold up in court still cost business owners real money to defend.
EPLI is a business’s main protection against claims of discrimination, harassment, retaliation and wrongful termination, and with such claims on the rise, it is just as important as professional liability coverage. Broad form EPLI will cover a business for defense costs, indemnity and third-party claims. Added benefits often include “duty to defend” language and 100% defense cost allocation.
Smaller businesses often argue that their staff is one big happy family, but the reality is this is simply not true. Employees have certain expectations of their employers, and even long-term, reliable employees can seize an opportunity for personal gain.
Knowing and complying with employment laws is a business owner’s first defense against certain fines and penalties. When mistakes are made, employers can rely on strong legal counsel, but ignored and unreported errors will only escalate matters over time.
Consider the following real claims scenario:
An employer in the Midwest was summoned by the U.S. Department of Labor for Fair Labor Standards Act violations due to a timekeeping discrepancy and a misunderstanding of U.S. overtime policies by the company’s management. Engaging the injured parties, paired with the fast action and cooperation of their legal team, saved the employer from a criminal investigation and punitive fines. The employer paid the owed back wages, but without proper insurance provided by a reliable company with an experienced claims team, the consequences of their mistake could have been a lot worse!
Business owners have a lot on their plates and managing an EEOC claim can be a stressful and costly expense. Utilizing EPL coverage through a highly rated carrier is an efficient risk transfer for this exposure. Engaging expertise, particularly in the event of frivolous allegations, can save a business valuable time and money.
For more insight on today’s changing employment landscape, check out Protector Plans’ eBook.
[1] Seyfarth “EEOC-Initiation Litigation,” 2023.
This information is intended for informational purposes only. Protector Plans Executive Liability is not liable for any loss or damage arising out of or in connection with the use of this information.
by Juliane Rees | Jul 26, 2023 | Industry News
Documentation, level-headedness, focus and consistency are important aspects of a smooth firing process.
By Ben Young, Christie Vu and Gregory Boornazian
“Everyone knew that person wasn’t doing their job,” doesn’t stand up in court. What if the manager that initiated a termination is no longer with the company when a discrimination claim is made and there’s scarce documentation?
If it wasn’t documented, did it even happen?
Best intentions count for very little when there isn’t any proof to back up an employment termination decision. It doesn’t matter the size of the organization or the number of people who can provide testimony. There is ample room for dispute when it’s all hearsay. Even in today’s digital world, where an employee can be captured on screen being rude to customers, a company would struggle to justify such a termination without the proper misconduct documentation.
Trying to gather documentation after the fact is one of the hardest ways to defend a discrimination charge. If the documentation does not exist, it cannot retroactively be created.
Here are four best practices for employers to build a consistent firing process:
- Always submit something. Ideally, there is a designated form for firing managers to fill out. In circumstances where this form is unavailable or time does not permit, the firing manager should send a timestamped email or text message to the HR department to be included in the personnel files. In this case, function is more important than form, but ideally, employers should establish systems that support by-the-book employment practices.
- Cool down before documenting. Emotions should not play a role in the firing process. A clear head and cool temperament are preferred when documenting an employment incident, because plaintiffs’ attorneys can spin emotion into proof of bias.
- Focus on the specific performance issue. This is why written communication of the job expectations during the hiring process is so important. There should be no room for surprises. If an employee continues to not meet performance expectations, there is cause for termination. However, if either the expectations or the performance issues go undocumented, there is an open door to dispute the dismissal.
- Be consistent in the review process. If one employee receives more leniency, it could appear as favoritism and unfair employment practices. A good rule of thumb is that there is no such thing as overcommunication. The review process should tell a consistent story about the individual employee as well as the importance of employee performance across the organization. “They weren’t a good fit,” is not a legally appropriate cause for termination.
By following these four best practices, employers can ensure the firing process is a smooth and streamlined event. They will also be better protected against wrongful termination claims.
For more insight on today’s changing employment landscape, check out our eBook: Navigating the Complicated World of Hiring, Firing, & Retaining in 2023
This information is intended for informational purposes only. Protector Plans Executive Liability is not liable for any loss or damage arising out of or in connection with the use of this information.
by Juliane Rees | Jul 19, 2023 | Industry News
Consistency, accuracy, documentation and follow-up are the essential aspects of a successful hiring event.
By Ben Young, Christie Vu and Gregory Boornazian
The foundation of a strong hiring process is consistency. Not only can it save time and make it easier to assess candidates, it can facilitate fair hiring and support the organization against any future job qualification or expectation disputes.
The backbone to a consistent hiring process is documentation. This includes notes on promised benefits, signing offers and any red flags with each candidate. If all communication, references and assessments are documented, employers can make sure each candidate receives the same information, is evaluated on the same criteria, and understands the expectations of the role.
Here are four best practices to building a consistent and well-documented hiring process:
- Start with an accurate job description.
If the job requires the worker to lift 100 pounds but it wasn’t listed in the job description, the employer may not be able to lawfully fire them once hired for not meeting that expectation. On the other hand, it is possible to disqualify an applicant who does not meet a qualification that is stated in the job description, as long as the employer can justify that requirement.
- Stay neutral in documentation and reporting.
Hiring decisions cannot be based on emotions because personal opinions are risky for employment practice liability. When documenting an applicant’s experience and interview performance, it is important to stick to the facts. Note both the positive and negative aspects of each candidate in relation to the job qualifications.
- Formalize the offer process.
A great way to do this is with a hiring letter that records the terms of employment. This letter should be consistent across positions within the office, including the same data points such as pay, sign-on bonuses, benefits, performance review schedule, and all other key terms decided upon hiring.
- Follow up with each applicant.
It’s a good practice to reach out to each applicant, even to notify them that they were not chosen to move forward in the process so they’re not left waiting and wondering. Stay generic and consistent. There is no need to explain the reasons why they did not qualify.
By following these four best practices, employers can ensure their hiring process is a smooth and streamlined event.
For more insight on today’s changing employment landscape, check out our eBook: Navigating the Complicated World of Hiring, Firing, & Retaining in 2023.
This information is intended for informational purposes only. Protector Plans Executive Liability is not liable for any loss or damage arising out of or in connection with the use of this information.
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