Management and professional liability

The people running your business are facing unprecedented exposures with changes to national and global regulations, as well as heightened scrutiny by the public and media. Whether your financial institution is an asset management firm, hedge fund, real estate investment trust, insurance companies, bank or other lending institution, the threat of litigation is prevalent. Zurich offers a variety of insurance solutions to help you protect your executives and board members — along with their personal assets. 

When investments disappoint or regulatory misconduct is suspected, investment advisers and hedge-fund managers can be the subject of litigation. Zurich’s asset management insurance solutions provide professional and management liability coverage for a wide range of investment advisers and mutual funds.

Why Zurich?

With 125 years of experience working with financial institutions, Zurich understands the threats to your business. Zurich combines vast experience with predictive analytics to help foresee and mitigate traditional and emerging risks. A highly innovative approach helps Zurich create solutions that anticipate and respond to today’s highly regulated and technologically advanced market.

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Management and professional liability solutions

Directors & officers for public companies

The senior members of your business are closely tied to the litigation brought before the company. Make sure they are protected with comprehensive Directors & Officers (D&O) insurance. Every member of Zurich’s D&O claims team is an attorney, with broad knowledge of today’s litigation environment, who understands the risks to public, private and nonprofit companies.

Directors & Officers for public companies

Zurich D&O Select® includes features such as:

  • Insurance protection for retired independent directors
  • Enhanced coverage for individual insureds
  • Environmental mismanagement claims extension
  • eDiscovery endorsement

Directors & Officers for private and nonprofit companies

Zurich offers D&O specifically for private and nonprofit companies. We have programs specifically designed for:

  • Non-financial companies
  • Complex privately-held companies
  • Nonprofit organizations, including healthcare organizations

Side A

New regulatory and legal challenges are making some executives question the value of traditional corporate coverages, particularly when protection plans are not valid in foreign jurisdictions. Zurich’s Executive Asset Protection Side A policy was designed to address the evolving litigation landscape and offer broad protections for liability exposures in the global marketplace. Zurich’s Executive Asset Protection Side A Policy includes:

  • Broad coverage grants and limited exclusions
  • Advancement of defense costs
  • Option for directors and officers to purchase extended reporting period
  • Non-rescindable coverage for additional reassurance
  • International coverage and services in over 180 countries and territories, tailored to local rules and regulations

Asset management

When investments disappoint, investment advisers and hedge-fund managers can be the subject of litigation. Zurich’s asset management insurance solutions provide professional and management liability coverage for a wide range of investment advisers and mutual funds.

Financial institution select bond

Beyond preventative measures, including screening employees for security risks, companies need to protect their cash assets and securities. All financial institutions are required to carry fidelity insurance on their employees, but our product goes beyond traditional policies to include other crime coverage, such as:

  • Burglary and robbery
  • Employee dishonesty 
  • Unexplainable or mysterious disappearance
  • Damage or destruction
  • Counterfeit currency
  • Damage to equipment or furnishings as a result of vandalism
  • Larceny or theft
  • Electronic and wire-transfer systems
  • Combination safe deposit boxes
  • Kidnap, ransom and extortion

Insurance agents E&O

Human error occurs in every industry. Zurich’s insurance agents E&O covers negligent acts, errors and omissions by an agent and includes vicarious liability for the agents employer or organization of the sponsoring entity.

Employment practices liability

In addition to the best practices of your HR managers, ensure your business is doing everything to protect itself against employee litigation. Zurich’s employment practices liability covers claims by employees against employers, including wrongful termination, failure to promote, negligent evaluation, discrimination and sexual harassment. Go beyond insurance protection by establishing proactive governance using Zurich’s risk-management services and tools.

Computer crime coverage

Security data is a primary concern for financial institutions. Zurich’s computer crime coverage addresses losses directly caused by fraudulent entry or change of electronic data and computer programs.

Kidnap, ransom and extortion

Kidnap, ransom and extortion coverage provides insurance protection for your most valued employees. Zurich can cover losses resulting from unfortunate events.

Lender liability

As environmental contamination issues continue to grow, they are more sensitive and prone to litigation. If your financial institution is invested in commercial real estate, this can affect your bottom line. Zurich’s Lender Environmental Collateral Protection policy can help protect banks that hold or invest in individual or portfolio loans backed by commercial real estate. In the event of a loan default and discovery of environmental contamination, the policy provides coverage to help protect collateral value and related financial losses. Lender Environmental Collateral Protection offers features such as:

  • Claim reopening for discovery of new and/or additional cleanup costs
  • Coverage for the term of the loan to maturity
  • Waiver of subrogation against borrower in possession
  • Assignment of interest may be assigned to successor lien holder
  • Primary insurance wording
  • Deductible starting at $0
  • Automatic 60-day extended reporting period (ERP)
  • Optional extended reporting period up to three years
  • Faster and easier loan processing
  • Better insurance protection from existing and new environmental exposures
  • Lower costs compared to traditional due diligence or mitigation methods

Fiduciary responsibility select

Zurich’s fiduciary responsibility select insurance policy covers alleged wrongful acts in administering your employee benefit plans. It covers actual or alleged violations of the Employment Retirement Income Security Act of 1974 (ERISA) and negligent acts, errors or omissions in the administration of any employee benefit plan offered by your company. Zurich customers receive our guide to understanding and managing ERISA-related risks, as well as one-on-one consultations with our FI risk engineer as needed.

Key features include:

  • Broad definition of who is insured, including the directors, officers and employees of the plan, the plan sponsor and trustees of the plan
  • Coverage can be added to pay for penalties assessed as a result of HIPAA or the Employee Plans Compliance Resolution Program
  • Insurance protection of directors’ and officers’ personal assets
  • Broad coverage includes insurance protection from negligent acts, errors or omissions of the insured in the administration of the plan
  • Automatic coverage for new subsidiaries that represent 25 percent of the total assets of the company, and acquired or new plans that are less than 10 percent of the fair value of the total assets of all plans of the company
  • Offers an extended reporting period
  • Coverage is available for a wide range of employee benefit plans

Security and privacy insurance protection policy

The banking industry collects and processes an increasing amount of data, putting sensitive company material at risk every year. Zurich financial specialists use risk foresight to help you assess, mitigate and manage risk to potentially reduce security breaches.

Zurich’s security and privacy insurance protection is available as a stand-alone product or as part of Zurich’s Financial Institutions Select®, which includes security and privacy insurance protection as part of its management and professional liability coverage.

Third-party coverages:

  • Security and privacy liability coverage
  • Internet media liability coverage

First-party coverages (available as options):

  • Privacy breach costs coverage
  • Business income loss and dependent business income loss coverage
  • Digital replacement expense coverage
  • Cyber extortion threat and reward payments coverage
  • Covers certain legal and public relations expenses

To help prevent and respond to online security breaches, Zurich offers award-winning risk management tools such as:

  • Our E-Risk Assessment tool to help you assess and manage potential security-breach exposure. You’ll have direct access to a risk management professional to answer questions and support preventative measures.
  • Complimentary access to eRisk Hub®, a web-based information resource from NetDiligence®* that can help you reduce the risk of a breach, and recover if one occurs.
* NetDiligence, Inc. is not a subsidiary or affiliate of Zurich and use of their products and services are independent of, and not included within, Zurich’s products or services. Zurich expressly disclaims any and all damages and other costs that may arise related to the use of or reliance upon the products, services, representations or warranties made by or on behalf of NetDiligence, Inc.

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