Protect Your Brand, Reputation and Assets

Non-Profit and Association & For-Profit Directors & Officers Liability

Moody handles hundreds of Directors and Officers policies for both private and public companies, so we have access to coverage offered by leading insurance companies. D&O policy forms differ greatly from company to company. You need expert professional advice to make the right choices when purchasing this coverage. And, should a claim occur, you need an experienced D&O agent on your side.

Directors and officers can be held personally responsible for their breach of duties, and have a responsibility to their employees, stockholders, vendors, competitors, and to governmental authorities. Many directors and officers have questions with regard to their current coverage, including:

• What happens if a claim is made against the company and the directors and officers?
• What is a “Hammer Clause?”
• What is the difference between “duty to defend” and “pay on behalf?”
• Why do we need an Extended Reporting Period?
• How can switching carriers be hazardous?

Moody is equipped to guide you through the complexities of Directors and Officers Liability, so allow us to take the mystery out of how you and your company can benefit from our experience. Public, private, or non-profit – we can help you understand the exposures you have, and find the best policy to fit your needs.

Employment Practices Liability

Employment Practices Liability Insurance (EPLI) provides legal defense and coverage for damages due to a broad range of employment-related events such as actual or alleged discrimination, harassment, retaliation, workplace tort, wrongful employment decisions or breach of employment contract.

EPLI policies differ greatly from company to company but should include: written demands for both monetary damages and non-monetary relief, civil proceedings, arbitration proceedings and formal administrative or regulatory or tribunal proceedings.

A broad EPLI policy will cover allegations arising out of violations of:

• American with Disabilities Act (ADA)
• The Civil Rights Act of 1991
• The Age Discrimination in Employment Act (ADEA)
• Title VII of the Civil Rights Act of 1964
• Family and Medical Leave Act (FMLA)
• Workers Adjustment and Retraining Notification (WARN)
• Fair Labor Standards Act (FLSA)
• Numerous Other State and Federal Statues

A broad EPLI policy should include allegations brought by:

• Past, Present or Prospective Directors – or equivalent position
• Past, Present or Prospective Officers
• Past, Present or Prospective Employees

* Coverage should be available to extend to allegations of discrimination or sexual harassment brought by a Third Party, committed or allegedly committed by an Insured Person.

A broad EPLI policy should include the following as insureds:

• The Company
• Past, Present or Prospective Directors – or equivalent position
• Past, Present or Prospective Officers
• Past, Present or Prospective Employees including part-time, seasonal, leased, volunteer and temporary employees. Independent Contractors generally can be added if such exposure exists but may not be provided automatic coverage as an employee.

Insured Losses under a broad EPLI policy should include:

• Defense Costs
• Damages
• Judgments
• Settlements
• Pre-judgment and post-judgment interest

Not all EPLI policies are created equal. To ensure that you have the EPLI coverage you need, it’s important to work with an agent who understands this coverage and can recommend the insurance carrier and policy contract wording that is appropriate for your company.

Miscellaneous Professional Liability

Moody understands the professional insurance needs of hundreds of industries and exposures. We routinely place Professional Liability insurance, and service customers who need policies covering:

• Media liability for online cyber exposures
• Architects and engineers in the construction trade
• Management consulting E&O for businesses consultants
• Healthcare E&O for healthcare professionals
• Nurse registry professional for nurse placement, private and home care agencies
• Staffing E&O

Moody also provides insurance for many other professional business exposures, needed to insure against lawsuits, allegations, and damages arising out of wrongful acts. Third-party Liability protection is typically not included in “General Liability insurance.”

Professional Liability/Errors & Omissions policy forms differ greatly from company to company. You need expert professional advice to make the right choices when purchasing this coverage. And, should a claim occur, you need an experienced E&O agent on your side.

We can help you find the right insurance policy and the best price. Moody has access to virtually all domestic insurance products, and international specialty programs, including Lloyd’s of London.

Fiduciary Liability

Many insurance agents are unable to explain what Fiduciary Liability insurance is and why coverage from Employee Benefits Liability insurance is usually inadequate.

Do you need a Fiduciary Liability policy? If you provide your employees with benefit plans, you have an exposure. If you feel you are adequately covered because you have an ERISA bond, you have a significant gap in coverage. Both ERISA bonds and Fiduciary Liability were created because of the Employee Retirement Income Security Act of 1974 (ERISA), but each provides entirely different and essential insurance coverage.

Fiduciary Liability provides for mistakes made by an employer in the administration and management of employee benefits plans, including retirement and pension plans. Employers are vulnerable to lawsuits of many kinds under this area of liability exposure, and properly written policies will protect your organization as well as the trustees.

Apart from the intuitive areas of exposure related to Fiduciary Liability, certain sections of ERISA create other unusual areas of exposure:

Section 409 of ERISA “Liability for Breach of Fiduciary Duty,” is the section of ERISA that imposes personal liability on any person who breaches those duties.

Section 406 “Prohibited Transactions,” lists what you cannot do as a plan fiduciary:

1. Transaction with a “party in interest;”
2. Using plan assets for your own interest;
3. Involving the plan on behalf of a party whose interests are adverse to the plan, it’s participants or beneficiaries; and
4. Receiving consideration for his own account from any party dealing with the plan in connection with transaction involving the plan assets.

Section 502(a) “Civil Enforcement,”details the authority of the United States Department of Labor to investigate and bring civil lawsuits for violations of ERISA. The DOL has greater enforcement rights than participants and beneficiaries.

Be sure you have a broker that understands the unique exposures of Fiduciary Liability so your program will be properly structured to protect your organization and the trustees.

Moody is prepared to handle all your Executive Liability needs. Call today for an appointment with one of our trained insurance professionals.

This description of coverage is not an insurance contract. Your policy is the contract that specifies and fully describes your coverage. Conditions and exclusions will apply. Not all coverage described is available in all states.