Insuring the interests of today’s corporate leaders
There is little that directors and officers can do to diminish the complexity of the business, legal and regulatory environments in which they operate. However, a great deal can be done to protect the personal assets of directors and officers through a combination of strong corporate governance, broad corporate indemnification, and a risk transfer program that includes a high quality D&O liability insurance program.
Directors and officers operate in an extremely difficult environment. Over the last decade or so, the fundamental principles governing their conduct have come under increasing judicial and regulatory scrutiny.
At its roots, D&O insurance insures “behavior” in that the decisions of directors and officers are the matters which often lead to covered claims. An incorrect decision often leads to shareholder discontent and, thus, a lawsuit against the directors and officers who made the decision. It provides coverage for defense costs and damages (awards and settlements) arising out of wrongful act allegations and lawsuits brought against an organization’s board of directors and/or officers.
Sisk & Co. has relationships with notable carriers and works to provide the coverage for directors and officers that is lacking in standard liability policies. Coverages include:
- Coverage for individual directors and officers when not indemnified by the corporation
- Coverage for the corporation (organization) when it indemnifies the directors and officers
- Coverage to the corporation (organization) itself for securities claims brought against it
Other professional services available through Sisk & Co. include:
- Errors and Omissions – Professional liability has become the “products liability” of the service sector. Professional liability coverage can protect against liability and help defray the cost of defense following a claim for an error, omission, or negligence in the performance of professional services.
- Fiduciary Liability – This coverage protects the organization for its role as trustees, fiduciary, professional administrator, and the plan itself with respect to errors and omissions in the administration of employee benefit programs, as imposed by the Employee Retirement Income Security Act (ERISA).
- Kidnap and Ransom – Business kidnapping and extortion risks are not limited to only global companies. Any company of any size can be a target for kidnappers or extortionists, whether domestically or abroad. Managing the costs associated with such risks can push a small to midsize company to its financial limit. Kidnap & Ransom coverage packages include insurance, risk management information, and immediate access to security consultants.