Prevention and exposure are inseparably intertwined. Neither issue can be successfully addressed with out considering the other—which is why Kapnick takes a holistic approach to executive risk management…
We know there are countless factors to consider when developing a plan for prevention as well as procuring actual liability coverage. Our goal is to help you navigate the complexity by presenting clear, straightforward solutions designed to meet real-world conditions and maximize your program dollars. Our team of dedicated experts, working with our partners and the providers we represent, will deliver more than an insurance-only solution. We’ll create a tailored program that can help you minimize or eliminate risk—and limit the potential for financial loss.
In working with you, our first course of action is to partner with your internal personnel to identify your company’s unique risks. We take a hands-on, in person approach that can include employee interviews, on-site tours, a review of your current policies/claims and more. Based on our findings, we’ll develop a strategy to manage your risk with the goal of reducing exposure and lowering the overall cost of protection.
While there are many areas to consider, general exposure and liability categories associated with executive risk include:
- Directors, officers and outside directors
- Employment practices
- Fiduciary responsibility
- Staff attorneys
- Kidnap and ransom
Directors, Officers and Outside Directors Liability
Whether private, public, for profit or not for profit, directors, officers and employees can be held personally responsible for the decisions they make. Personal liability is usually addressed in corporate charters through indemnification provisions, however, such provisions are only effective when the financial component of a risk management program is properly funded and insured. In light of rising litigation and increasing accountability, we take a big picture approach that includes tailored plan development and regular reviews to effectively minimize risk and reduce cost.
Employment Practices Liability
Exposure from employment practices liability includes legal and/or regulatory action brought by employees and/or outside parties (such as regulatory agencies) against corporate entities and/or employees. Such actions may include (alleged) discrimination, wrongful termination or harassment of any kind. Beyond insurance-only solutions, we can help you develop a comprehensive risk management strategy (e.g., employee training) to reduce corporate liability.
According to the Employee Retirement Income Security Act of 1974 (ERISA), individuals responsible for the design, administration and management of a company pension, benefits program and/or welfare plan (fiduciaries), can be held personally liable for any breach of their duties. It is vital that companies take to steps to implement risk control as well as ensure proper coverage.
Different forms of crime create different levels of risk and exposure. Forgery of financial instruments or theft of money and securities by an employee is categorically different than computer fraud and theft of liquid assets by an outside party. Our in-house experts can assist you in determining the best level of coverage to minimize loss.
In-house attorneys can face liability exposure outside of (or in addition to) other forms of executive risk insurance. For example, provision of secondary or supplemental services to non-client third parties may fall outside a given policy. When appropriate, we will recommend clients include specific additional policies to ensure proper protection.
Kidnap and Ransom
Kidnapping of employees with the goal of extortion is an unfortunate possibility in today’s global economy. International travel, the perception of personal and/or corporate wealth and (assumed) access to company assets make it imperative that executives understand this real-word risk. We can help you determine an appropriate level of coverage based on specific criteria.