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Executive, Employment and Financial Liability Insurance

Human Resource

Every company and nonprofit organization is exposed to financial liabilities due to the decisions made every day by board members, executives and management. Any claims from employees regarding sexual harassment, discrimination, wrongful termination and other unlawful acts against them can have a significant financial impact on your business. Executive, employment and financial liability insurance policies are designed to protect company assets proactively and reactively when dealing with claims relating to work. These insurance branches can provide coverage for a wide range of situations.

  • Crime
  • Cyber risks
  • Directors and Officers, Side A Difference in Conditions, Personal Directors Liability
  • Employment Practices Liability, Wage and Hour, Third Party
  • ERISA/Fidelity Bond
  • Fiduciary Liability
  • Kidnap and Ransom Occurrences

Detailed Coverage

These types of liability insurance policy focus on wrongful acts that may come up during the employment process. Claims that are covered by this insurance typically include wrongful termination, discrimination, sexual harassment, retaliation and other related inappropriate workplace conduct. Employees can claim defamation of character, invasion of privacy, failure to promote, deprivation of a career opportunity or negligent evaluation. This coverage can be set as a management liability package to ensure a full coverage policy to suit each employer’s needs. Coverage from a liability package is designed to protect your facility and all employees in the event of a claim that is not covered by traditional general liability insurance.


An executive liability package will usually bundle insurance together and can include:

  • Directors & Officers Liability (D&O), which protects all of the directors, officers and the corporation from a financial loss if a claim is made against them for actions against the defendant.
  • Fiduciary Liability can cover all legal fees and defense costs as well as damages from lawsuits regarding neglect or omission.
  • Employment Practices Liability (EPL) is designed to help in situations such as discrimination, harassment, retaliation or other wrongful acts in the workplace.

Protecting Your Company Assets

Maintaining a strict company policy that avoids errors in discrimination, retaliation and other concerns in the workplace is an essential part of preventing lawsuits. Communicating clearly and having set expectations for every employee helps build a strong foundation, but can sometimes still lead to claims made against your business. Investing in an insurance policy that will protect your company and its assets will help any potential lawsuits run smoother without an overwhelming financial burden and headache.

Frequently Asked Questions About Executive, Employment and Financial Liability Insurance

Is it possible for employment financial liability insurance to be bought in isolation?

Under regular circumstances, the employment financial liability insurance is purchased as a part of a business combined package or in co-occurrence with public liability. However, there are circumstances that allow for this particular insurance to be purchased on its own when agreed upon.

In regards to the employment liability insurance, who is recognized as being the employee in the company/business?

Any hired person working according to the control and direction of the employers of the company/business, be it the directors, direct employees, freelancers or sub-contractors, falls under this category.

What acts are taken as criminal liabilities?

Some companies are forced to deal with cases of kidnap, ransom and extortion exposures. Liability insurance has your back to help cover any monies paid out for these types of instances.

Do I need executive, employment and financial liability insurance if I am a small business?

Executive, employment and financial liability insurance is beneficial regardless of the size of your company. A potential claim can be made regarding wrongful termination, sexual harassment or descrimination even if you only have one employee. It is best to prepare yourself and your company for any potential claim.

What does liability insurance not cover?

This particular insurance covers legal costs and protects against claims that are submitted due to injury and/or damage to people and/or property where the insured party is found liable. However, it does not usually cover intentional damage, criminal prosecution, and contractual liabilities.

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