Running a successful business involves striking a balance between innovation and risk management. With the different insurance policy options available, it is important to consider which ones provide the necessary coverage for potential liability. When it comes to risk management for business executives, these are some of the components to be aware of:
Employment Practices Liability Insurance
EPLI policies are vital for protecting a business from a wide array of employee-related events, which can often include:
- Wrongful termination
- Breach of employment contract
EPLI policies minimize the exposure of claims made against a company’s directors and officers. They can vary depending on the particular vulnerabilities of a business.
Additional Liability Insurance
Businesses can also become vulnerable to risk through indirect exposure. Companies can be held liable for any claims made against a third-party contractor or agent. They may also be obligated to fulfill any fiduciary responsibilities toward employee benefit plans. Business executives should consider whether they need coverage due to:
- Contingent liability: minimizes exposure to third party claims
- Fiduciary liability: provides coverage for employee benefit plans
- Miscellaneous liability: protects against employee errors and property damage
Proper coverage is crucial for maintaining a fruitful business and mitigating unforeseen risks. Work with your agent to find the right insurance policies for your business.