Management Liability Protection for Manufacturers
Even with the growth from bullish markets over the past few years, manufacturers have faced unique challenges that jeopardize their financial stability and long-term sustainability.
The emerging effects of COVID-19 have accelerated and exacerbated these obstacles. A recent COVID-19 impact survey conducted by the National Association of Manufacturers (NAM) reported:
- 78.3% of manufacturers anticipate a financial impact
- 53.1% of manufacturers anticipate a change in operations
- 35.5% of manufacturers are facing supply chain disruptions
NAM also cites that in the U.S., manufacturers employ 8.51% of the workforce, with an average of 12.8 million manufacturing employees in 2018. Moreover, with so many industries undergoing layoffs, it is worthy to note that between the months of May 2020 and August 2020, the manufacturing sector experienced a consistent level of layoffs above 100,000 employees each month.
For the fortunate manufacturing businesses that are considered essential, there are still a multitude of challenges, such as regulatory requirements, workplace safety protocols, supply chain disruptions and slowed economic activity. In this environment of uncertainty, it is crucial that manufacturing firms maintain proper management liability insurance to protect their organizations and individual board members from liability risks as they navigate through difficult decisions.
Management liability insurance protects corporations (and individual board members) from lawsuits that could be brought by shareholders, regulatory agencies, creditors, employees and competitors for reasons including breaches of fiduciary duties, violations of employment laws and errors in managing employee benefit plans.
When evaluating your insured’s management liability policy, be sure to look for coverages and resources that include:
- $1 million additional Side A limit to protect the personal assets of individual directors when the company is unable to provide indemnification
- Lifetime Occurrence Reporting Provision for former directors and officers
- Wage and hour coverage including both defense cost and indemnity
- Value-added support services dedicated to helping policyholders through COVID-19 business resources
Devon Park Specialty’s Executive ViewPoint (EVP) Management Liability product includes all the above and many more important coverage features for our insureds.
Additionally, manufacturers have been our top class of business that we have been successfully writing throughout this pandemic. We are also seeing success in the technology industry segment along with specialty trade construction companies.
We welcome the opportunity to compete for you on these classes. Please send submissions to [email protected].
We are here to help our Devon Park Specialty policyholders. They can access COVID-19 resources through our Business Resource Center, including helpful information on the above questions and much more through a series of webinars available on USLI.com.
As always, thank you for your support and business.
Contact and Written by Kenny Bang
Assistant Vice President, Team Leader | 888-523-5545, ext. 2923
December 3, 2020