D&O/EPLI/Fiduciary Insurance for Manufacturers

Directors & Officers Liability Insurance

D&O insurance policies provide coverage for certain types of claims made against (or involving) officers and directors of a company. The insurance is utilized as both a risk management tool and a separate source of funds to the mutual benefit of the company and insured directors and officers alike.  Covered claims range from breach of fiduciary duties to conflicts of interest, antitrust and unfair competition and disclosure issues (for public companies) and the like. Claims can come from shareholders, creditors, regulators (e.g., investigations), consumers, competitors and others. There are three types of coverages available with D&O insurance:

• Side A:  Covers directors and officers of the organization.
• Side B:  Covers the company for its payment obligations for director and officer indemnity, usually subject to a “retention” or deductible amount that the company is responsible for paying first.  Its purpose is to assist the company in risk management and provide assurance of funds to meet indemnity obligations.
• Side C: Provides coverage for the company itself as an entity.  

Employment Practices Liability Insurance

EPLI coverage helps safeguard your manufacturing business against employee claims and lawsuits alleging inappropriate or unfair acts. Even when done unknowingly, violating an employee’s rights can have devastating consequences. Common employer missteps include:

• Wrongful discipline, demotion, or termination
• Failure to hire or promote
• Sexual harassment
• Discrimination, from age, race, religion to sexual orientation
• Libel, slander, defamation of character, or invasion of privacy
• Wrongful infliction of emotional distress
• Unpaid Wages

EPLI includes legal defense fees and settlement costs or damages – up to the policy’s limit – whether you win, settle, or lose a case.

Fiduciary Liability Insurance

Fiduciary Liability insurance covers the responsibility of employers, trustees and professional administrators with respect to errors and omissions in the administration of an employee benefits plan. A fiduciary can be anyone who exercises discretionary authority in managing a pension or employee benefits plan, renders investment advice with respect to monies belonging to the plan or has any discretionary authority or responsibility in administering the plan. Claims can stem from allegations of bad investment decisions, negligently handling plan records, and negligently selecting plan service providers, among others.