Management Liability (Directors & Officers Liability, Employment Practices Liability, Fiduciary Liability)

Employment Practices Liability

Insuring Agreements:

Coverage A – Individual Non-Indemnified Liability:

Underwriter will pay on behalf of the insured persons loss arising from a claim first made against them during the policy period due to a wrongful act, unless the insured entity pays such loss to or on behalf of the insured persons as indemnification.

Coverage B – Individual Indemnified Liability:

Underwriter will pay on behalf of the insured entity loss arising from a claim first made against the insured persons during the policy period for their wrongful act, if the insured entity pays such loss to or on behalf of the insured persons as indemnification.

Coverage C – Entity Liability:

Underwriter will pay on behalf of the insured entity loss from claims first made against the insured entity during the policy period for its wrongful acts.

Insuring Agreements:

Coverage A – Employment Practices Liability:

The underwriter will pay on behalf of the insured loss for any employment claim first made during the policy period for a wrongful employment practice.

Coverage B – Employment Practices Third Party Liability:

The underwriter will pay on behalf of the insured loss for any third party claim first made during the policy period for a third party wrongful act.


Coverage Extensions:

  • Defense Costs for Breach of Contract Claims
  • Punitive Damages, unless prohibited by law
  • Outside Directorship Liability
  • Spousal Coverage
  • Domestic Partner
  • Separation of Insureds
  • All sponsored employee benefit plans, including all welfare benefit plans
  • Definition of insured includes the sponsor organization, the specified plans, and all trustees, directors, officers, and employees

Fiduciary Liability:

Fiduciary Liability Insuring Agreement:

The insurer will pay on behalf of the insured persons and/or the entity all sums that the insured shall become legally obligated to pay as damages on account of any claims first made against the insured during the policy period as a result of any obligations or duties imposed upon fiduciaries of an employee benefit plan by ERISA, as amended, and subject to various enhancements and limitations of coverage.

Coverage Extensions:

  • All “sponsored” employee benefit plans including all “welfare benefit” plans.
  • Definition of “Insured” includes the “sponsor organization,” the specified plans, and all trustees, directors, officers, and employees.

Insurer:

Chubb Insurance Group (Best’s Rating: A++ XV)

Coverage placed by AJG