Commercial Insurance
The dynamics of the global economy has left many companies in a very different financial position – one not
contemplated nor prepared for. Establishing effective strategies through risk transfer is more important than
ever to conserve cash flow and prepare for future opportunities and uncertainties. The allocation of funds for
the purchase of insurance must be used to maximize the breath of coverage with the confidence to potentially
access the proceeds of the policy with reliability if needed.
Liability insurance for management risks remains available and relatively affordable. Even with increased
regulatory scrutiny, an increase in employment and securities class action litigation, mega-settlements and a
shrinking capacity from insurers. Nonetheless, paying close attention to insurance concerns during a challenging economy is prudent. Explore alternative program options. In the present climate, the mandate to insurance purchasers may be to buy “more” for “less”. Considering alternative strategies will help you identify your prioities so that you may proceed with any necessary changes to your existing risk transfer strategy. As a cost saving measure, high deductibles can reduce premium costs, but raising attachment points must be weighed against the impact of large cash spends in the event of loss. In an environiment where federal bankruptcy filings have increased by 30%, securing additional Side “A” d&O coverage may be financially sound risk management approach. Self-insurance alternatives, such as captives can be an attractive option for those unable to establish satisfactory risk transfer.
Actuarial experts will identify what you should be paying, and not just what the
market offers. Distinguishing your company and highlighting the positive aspects
that differentiate your firm from Million understands the complex nature of today’s
professional and executive risk climate. The growth in frequency and severity of
losses over the past several years has been substantial and unprecedented.
Underwriting results have been particularly hard hit by a spate of large scale
claims of corporate fraud and negligence. It is important that your insurance
broker has the sophistication to successfully differentiate your firm from the
competition and navigate to meet your goals. Million has the expertise to take
on your risk issues with creativity, passion and innovation. We are proactive,
service-minded, and committed to client service. We specialize in: (we serve
Healthcare, Technology, and Service organizations, including public, private
and non-profit enterprises)
Directors and Officers (D&O) Liability
Directors and officers of corporations face unparalleled scrutiny in today’s complicated, ever-changing regulatory and legal climate.
The Directors & Officers Liability (D&O) insurance product provides coverage to officers and board members for damages (settlements or awards) and defense costs that arise from lawsuits alleging various wrongful acts, including:
• Actual or alleged management errors or omissions
• Any misrepresentation, misleading statement or misleading action
• Neglect or breach of duties by the individual directors and officers
Board members are obligated to act in good faith and in the best interests of the company. They can be held personally and individually responsible for their action, or lack of action, in managing a company. They are vulnerable to lawsuits based on a number of grounds, including (but not limited to) the following:
• Inaccurate or inadequate disclosure
• Wrongful employee termination
• Decisions regarding mergers or acquisitions
• Discriminatory practices
• Breach of duty to minority shareholders
• Deceptive trade practices or anti-trust actions
• Mismanagement of funds
• Conflicts of interest
• Unwarranted compensation
• Misleading financial reporting
Professional Liability/Errors and Omissions Insurance is provided to cover costs from claims regarding the inadequacy of professional services where a fee has been charged for services. We have considerable experience providing insurance coverage for Errors & Omissions exposures for professionals such as:
• Asset Managers, Investment Advisors
• Financial Institutions
• Health Insurance Plans, Companies & IPA’s
• Managed Care Organizations
• Technology Companies
Cyber Liability/Technology E&O
Most businesses have experienced data security breaches. The Federal Bureau of Investigations, identity theft is the fastest-growing white-collar crime in America. Over 40 states require that individuals (customers, employees, citizens, students, etc.) are notified if their confidential or personal data has been lost, stolen, or compromised. The emergence of state privacy laws, various federal laws (HIPPA, Federal Trade Commission Regulations, Securities Exchange Commission), and foreign laws have created increased awareness of identity theft.
As such, there has been a rise in class action suits and regulatory actions are becoming more commonplace. The security and safeguarding of information is paramount to protecting an organization from embarrassment, reputational damage, financial loss, regulatory intervention and even public boycotting. The depth and breadth of the potential costs and expenses from a breach are still developing and not fully known. What we do know is that organizations have already incurred significant cost and expense, from legal fees, credit-monitoring for individuals, reparations, fines, penalties and redress funds. We are still in the process of uncovering and understanding the current and evolving cyber world phenomena.
Fiduciary Liability
The Employee Retirement Income Security Act of 1974 (ERISA) contains laws and regulations that protect the assets of employee benefit plans. Under the laws of ERISA, individual plan managers (fiduciaries) are held personally liable as a result of their negligence in the administration or management of employee benefit plans. ERISA specifically prohibits those responsible for managing employee benefits plans from transferring their personal liability to others. However, ERISA does permit fiduciaries and/or the Plan to transfer the risk of loss via the purchase of insurance.Most executives would not consider working for an organization without adequate D&O insurance coverage. Yet the same concern is often missing when it comes to ERISA-related fiduciary coverage.The Employment Retirement Income Security Act of 1974 (ERISA) holds the company and its fiduciaries personally liable for losses to the company's benefit plans by reason of a breach of duties. An administrative error or omission on the part of the fiduciaries of employee benefit plans can result in a lawsuit, one which could be devastating to your business as well as to the personal financial stability of your fiduciaries.
In the event of significant outsourcing of the management of your company's benefit plans, there is no reduction in fiduciary liability whatsoever,
those officers selecting the outsource firm will be held liable for their decision to outsource, their selection of that particular firm, and any claims arising from that firm's activities on behalf of the client company.
Employment Practices Liability
Employees today know more about their rights and have a heightened awareness of a variety of employment practice issues. In addition, recent legislative and legal developments have contributed to a more litigious landscape, including expanded employer liability.
• Such expansion has arisen both directly and indirectly from the passage of laws such as The Civil Rights Act of 1991, The Americans with Disability Acts, The Family Medical Leave Act, and The Age Discrimination in Employment Act. This emergence of new exposures, and new types
of claimants who are both more educated and more cognizant of the laws, has led to record levels of claims, both in terms of frequency and cost.
Property & CasualtyThe basics of insurance coverage for business is property, crime, cargo, general liability auto liability, umbrella liability.
Commercial
Insurance
Million Insurance Agency
155 Bovet Road, Suite 406
San Mateo CA 94402
LIC.# OD40556
Privacy Policy
PO Box 5580
San Mateo CA 94402
