Management and professional liability

There is a risk that senior members of your business are closely tied to litigation brought before the company. Make sure they are protected with comprehensive Directors & Officers (D&O) insurance. Zurich D&O Select^® includes features such as:

• Insurance protection for retired independent directors
• Enhanced coverage for individual insureds
• Environmental mismanagement claims extension
• eDiscovery endorsement
• Definition of loss includes carve-back for section 130 or 130.1 of the Ontario Securities Act and sections 11, 12 and 15 of the United States Securities Act of 1933

New regulatory and legal challenges are making some executives question the value of traditional corporate coverages, particularly when protection plans are not valid in foreign jurisdictions. Zurich’s Executive Universal Select Insurance Side A policy was designed to address the evolving litigation landscape and offer broad protections for liability exposures in the global marketplace. Zurich’s Executive Universal Select Insurance Side A Policy includes:

• Broad coverage grants and limited exclusions
• Advancement of defence costs
• Option for directors and officers to purchase extended reporting period
• Non-rescindable coverage for additional reassurance
• International coverage and services in over 170 countries, tailored to local rules and regulations (through licensed affiliates and partners)

When investments disappoint, investment advisers and hedge-fund managers can be the subject of litigation. Zurich’s asset management insurance solutions provide professional and management liability coverage for a wide range of investment advisers and mutual funds.

Beyond preventative measures, including screening employees for security risks, companies need to protect their cash assets and securities. Financial institutions may be required to carry fidelity insurance on their employees, but our product goes beyond traditional policies to include other crime coverage, such as:

• Burglary and robbery
• Employee dishonesty
• Unexplainable or mysterious disappearance
• Damage or destruction
• Counterfeit currency
• Damage to equipment or furnishings as a result of vandalism
• Larceny or theft
• Electronic and wire-transfer systems
• Combination safe deposit boxes

Human error occurs in every industry. Zurich’s insurance agents errors and omissions (E&O) coverage covers negligent acts, errors and omissions by an insurance agent or broker and includes vicarious liability for the agent’s employer or organization of the sponsoring entity.

In addition to the best practices of your HR managers, ensure your business is doing more to protect itself against employee litigation. Zurich’s employment practices liability covers claims by employees against employers, including wrongful termination, failure to promote, negligent evaluation, discrimination and sexual harassment. Go beyond insurance protection by establishing proactive governance using Zurich’s risk-management services and tools.

Zurich offers employment practices liability coverage that includes independent contractors, volunteers of the insured organization and third-party coverage. We also offer a variety of services to qualified customers that help HR professionals manage risk.

Value-added services available to qualified customers include:

• HR Care™* (hrcare.com) provides access to employee law resources
• HRClassroom.com offers a way to deliver quality, easy-to-use employee compliance training
• Hotline services that feature personalized, practical, confidential advice from experienced lawyers at one of the country’s leading employment law firms

*HR Care™ is not an affiliate of Zurich and use of its products and services are independent of, and not included within, Zurich’s products or services. Zurich expressly disclaims any and all damages and other costs that may arise related to the use of or reliance upon one or more of the products, services, representations and warranties made by or on behalf of HR Care™

Security data is a primary concern for financial institutions. Zurich’s computer crime coverage addresses losses directly caused by fraudulent entry or change of electronic data and computer programs.

As environmental contamination issues continue to grow, they are more sensitive and prone to litigation. If your financial institution is invested in commercial real estate, this can affect your bottom line. Zurich’s Lender Environmental Collateral Protection policy can help protect banks that hold or invest in individual or portfolio loans backed by commercial real estate. In the event of a loan default and discovery of environmental contamination, the policy provides coverage to help protect collateral value and related financial losses. Lender Environmental Collateral Protection offers features such as:

• Claim reopening for discovery of new and/or additional cleanup costs
• Coverage for the term of the loan to maturity
• Waiver of subrogation against borrower in possession
• Assignment of interest may be assigned to successor lien holder
• Primary insurance wording
• Deductible starting at $0
• Automatic 60-day extended reporting period (ERP)
• Optional extended reporting period up to three years
• Faster and easier loan processing
• Better insurance protection from existing and new environmental exposures
• Lower costs compared to traditional due diligence or mitigation methods

The regulatory and litigation environment for employers offering employee benefit plans and programs continues to evolve. Increased compliance enforcement, plaintiffs testing the boundaries of legal precedents and court decisions expanding liability are putting fiduciaries' personal assets at greater risk. Zurich's fiduciary liability insurance form provides coverage for directors, officers and others with fiduciary duties for public and private companies who may become targets of allegations and investigations while managing or administrating employee savings, pension, and health and welfare plans.

Coverage highlights include:

• Duty to defend coverage with the insured’s choice of counsel
• Worldwide coverage
• Non-cancellable except for non-payment of premium
• Broad definition of insurance—providing coverage for pension and welfare plans, the sponsor company and all insured persons including employees, fiduciaries and volunteers