Can Your Insureds Afford Not to Renew Their Management Liability Policies?
As the saying goes, hindsight is 20/20. As we wrap up 2021, we look back and examine lessons learned in the management liability world. While many industries strive to recoup losses from the effects of the pandemic, other segments have carved out niche opportunities as launch pads for growth. In both cases, companies and business owners have had to make challenging business decisions in the past year that range from cost cutting to fundraising.
We have seen rate increases in the management liability insurance market. Policyholders are often tempted to non-renew or reduce the limits of their insurance policies to alleviate business expenses. While this may appear to be a sensible way to save money in the short term, it can prove to be a grave mistake when hit with an unforeseen lawsuit that can drastically jeopardize a company’s financial solvency. With the rise of multimillion dollar jury verdicts, overall legal fees, claim settlements and defense costs, it is vitally important for companies to maintain their management liability policies.
In addition, startups with shoestring budgets may not see the need for management liability policies, particularly now as they may seem too pricey. However, as entrepreneurs look to secure series funding, attract new investors, grow their employee base and hire talented executives, it is a wise decision for them to have a management liability policy in place to protect their companies from the growing concerns of shareholder derivative demands, regulatory requirements and employment laws.
Devon Park Specialty’s Management Liability product offers a robust management liability coverage form and endorsements.
- Additional Side A limit of $1 million automatically included for directors and officers for limits up to $4 million
- Lifetime Occurrence Reporting Provision provides an unlimited extension of time to protect former directors and officers from claims if the new board elects to cancel or non-renew their coverage with us as outlined in our policy
- Wage and hour sublimit includes defense cost and indemnity (not available in California and Florida) whereas many carriers offer defense cost only
- Duty to defend policy with 100% allocation
We not only provide a comprehensive coverage form, but also help our insureds to reduce business expenses and grow their operations with a variety of free and discounted services offered through our Business Resource Center. All Devon Park policyholders have access to resources related to:
- Human resources
- Pre-employment screenings
- Cyber risk
- Safety and loss control
- Online learning
- Payroll and taxes
With our competitive policy language and excellent service, let us help you provide a competitive quote option to your clients. You can send submissions to [email protected].
As always, thank you for your support and business.
Contact and Written by Kenny Bang
Second Vice President, Team Leader | 888-523-5545, ext. 2923
December 2, 2021