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Directors and Officers

D&O Policy Pricing

While the Directors and Officers (D&O) insurance market for Initial Public Offerings (IPO) and Special Purpose Acquisition Companies (SPAC)  remains challenging in both pricing and capacity, the overall market predictions for public and private D&O insurance are cautiously optimistic as we head into the second and third quarters of 2022. The D&O market remains in a holding pattern with 5% to 10% price increases as the world continues to experience economic uncertainty in the aftermath of the pandemic. Initial concerns about high volumes of company bankruptcies and/or security claims following COVID-19 have not materialized, and while inflation is a known concern, its… Read More »D&O Policy Pricing

Coronavirus – Does Your Insurance Cover You?

The disruption to business and everyday life caused by the coronavirus (COVID-19) pandemic is resulting in an economic impact for every business. With hourly announcements from health agencies calling for social distancing, school closings, business restrictions, and event cancellations, current news reports indicate the crisis will get worse before it gets better. Much of this disruption is likely not covered by insurance.

The two most asked questions we’ve received over the past two weeks have been:

– Where can I buy coverage for the COVID-19 viral pandemic?
– Does my insurance have coverage under my current policy?

We have consulted with specialists across the Property, Casualty and Professional Lines sectors and offer the following COVID-19 update. Please note this is not an interpretation of any policy language and we recommend that you inquire with counsel for specific interpretation and advice on your particular insurance policy.Read More »Coronavirus – Does Your Insurance Cover You?

D&O Risks to Non-Profits

Non-profits file D&O claims twice as much as for-profits. Learn more about this growing risk and D&O coverage specifically designed to meet the needs of non-profits.

Why D&O Policies are Vital for Non-Profit Organizations

Running one of the 1.5 million non-profit organizations in the United States is a fulfilling and meaningful experience. It also brings significant risks and loss exposures. Every year, non-profit leaders are exposed to Directors and Officers (D&O) claims made against them and the organizations they manage.

With D&O lawsuits on the rise, more and more non-profit organizations are turning to insurance solutions and obtaining Directors and Officers Liability coverage as part of a Management Liability policy.

At Paperless Insurance Services, we have an extensive background in providing coverage for non-profits.

Understanding Management Liability Insurance

Read More »D&O Risks to Non-Profits

Cyber Liability and D&O

One click is all it takes to order goods, exchange payment, and have the items shipped and delivered to a doorstep within hours.

But what happens when that one click is not used to facilitate commerce but rather used to intentionally or even accidentally disrupt a network? When one click releases a malicious code causing an assembly line to come to a screeching halt? When one click transfers millions of dollars to a fraudulent account? When one click by a rogue employee disseminates the contents of personal files to the public? In these instances, who is ultimately responsible?

In recent cases, fingers have pointed directly at the board of directors. Since 2013, several shareholder derivative suits have been filed following network security breaches. Defendants have included Home Depot, Horizon Blue Cross Blue Shield, Target, Wyndham, and Wendy’s. Technology is changing at a rapid pace, and it is clear that consumers and shareholders have high expectations for businesses and those who run them.

Allegations in these network security cases have included breach of fiduciary duty, negligence, breach of implied contract, and violation of various state and federal statutes. Interestingly, most of the aforementioned cases have been dismissed (or settled) – apart from Wendy’s, which is still in its early stages. These dismissals are showing that the plaintiffs are having difficulty: (1) proving corporate mismanagement as a direct cause of harm from a data breach, and (2) showing actual compensatory injuries as a direct result of the breach. Courts have been dismissing cases in which actual damages have not been proven.Read More »Cyber Liability and D&O

Directors and Officers Liability (D&O)

Directors and Officers Liability (D&O)Directors and Officers Liability (D&O) is often confusing for buyers and insurance brokers alike. The marketplace is characterized by a large number of insurance carriers underwriting this coverage, and each of their forms has different terms, conditions, and most importantly, exclusions. Since an “all risk” D&O policy does not exist, there aren’t obvious perils listed and covered like you might find in a property policy. For that reason, it is normally easier to explain the intent of the coverage as opposed to reading the policy line by line.

D&O: A Brief Overview

Here is an oversimplification of what D&O insurance is supposed to do. Read More »Directors and Officers Liability (D&O)

How to Onboard and Train Employees into a Safety Culture

How to Onboard and Train Employees into a Safety CultureOnce you attract and hire qualified job candidates to your open positions, having an onboarding and training process can help employees work safely and effectively. A continuous onboarding program will help orient employees not only to the functional details of employment, such as appropriate safety procedures, but also to the safety culture of the organization.

Employee retention strategies, such as onboarding and training programs, can also help protect the considerable time and expense invested in recruiting and hiring new employees. According to the Institute for Research on Labor and Employment (IRLE) at the University of California at Berkeley, the costs of replacing an employee are approximately 9% of an employee’s annual wage. In addition to any lost productivity and institutional knowledge, those costs include recruitment, selection, the costs of learning on the job and any separation costs.Read More »How to Onboard and Train Employees into a Safety Culture

Professional Lines and TRIA: Surprising Coverage Triggers

Terrorism Insurance Coverage Triggers London Insurance MarketplaceWith the recent renewal of the Terrorism Risk Insurance Act (TRIA), it seemed like a good time to look at the Management Liability and Professional Liability lines to discuss how terrorism in general can trigger coverage. While TRIA is a backstop for insurers and may not directly benefit clients from a coverage perspective, it does serve as a reminder that insurance can play a role in the recovery from terrorist events. While scenarios that trigger coverage under management and professional lines of coverage aren’t always obvious, they do exist. Fidelity / Crime Let’s start… Read More »Professional Lines and TRIA: Surprising Coverage Triggers

Protecting Religious Organizations: Unique Insurance Coverage to Consider

Traditional coverage religious organizations typically require include:

  • Liability Insurance – liability insurance protects the church when it is liable for damages caused to another or another’s property
  • Professional Liability or Acts, and Errors & Omissions Coverage – protects employees and the church in the event of a lawsuit for an actual or alleged wrongful act in connection with their position at the church
  • Business Auto – if the church owns a fleet of vehicles, they need to explore business automotive coverage
  • Workers’ Compensation Insurance – depending on state laws, churches may need to provide workers’ compensation coverage to its employees.

However, the following two unique insurance coverage are applicable to every religious organization:Read More »Protecting Religious Organizations: Unique Insurance Coverage to Consider

International Advantage Natural Disaster Enhancement

When working in the real world, businesses can face real world problems.
A U.S.-based church group was stranded in a Haiti crisis zone. Our service provider sent a security detail to escort the group to the Dominican Republic, where they were repatriated safely to the U.S. within 24 hours of the call.

How can we help?
Our international package policy can provide executive assistance services with an optional Natural Disaster Relocation and Repatriation coverage enhancement to assist your employees in their time of need.

Read More »International Advantage Natural Disaster Enhancement

Coverage options for your barber and beauty business

Beauty Salon Parlor InsuranceCoverage for barber and beauticians professional liability is automatically included for your “employees” under the commercial general liability coverage form. We have the ability to provide professional liability coverage for barbers and beauticians that are independent contractors – this optional coverage is available for $25 per independent operator under the Additional Insured-Independent Operators form -CG T567 (11-03).

The form does require each operator be scheduled. For additional information, contact us via email or call 877-239-0067

Read More »Coverage options for your barber and beauty business