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MANAGEMENT LIABILITY

Including Directors & Officers Liability
Contact Our Professionals

Serving as a director, officer or manager of any business can pose substantial personal financial impact to even the most astute executive. Decisions surrounding corporate governance, mergers and acquisitions, financings and other management practices are subject to increasing scrutiny from regulators, investors and third parties. When lawsuits arise, there is a delicate balance between the interests of the corporation, management and independent directors which are not always aligned when it comes to insurance.

WHY AHT & MASON AHT?

AHT maintains outstanding underwriting relationships with the entire management liability insurance market. We firmly believe that a management liability client extends beyond the company to the individuals serving on its board and its management team. With decades of experience, AHT and Mason AHT are leaders in Management Liability insurance coverage, both in terms of risk assessment and program design. Our expertise ranges from multinational public companies to emerging innovation companies, along with the venture capital firms that invest in them. Unanticipated and complex litigation can derail any company. Our goal is to assist our clients navigate through turbulent times with the combination of best advice and insurance coverage available. We have worked with our clients through the most complicated claims scenarios, including, but not limited to, securities litigation, international bankruptcies, employment related actions, dilution issues and challenged exits. Through all of this, a common theme in our client feedback is their overall satisfaction with our expertise leading to favorable outcomes in complicated litigation.

2019-2020 STATE OF THE D&O MARKET REPORT

Prepare for issues that may impact your organization’s liability risks – take a look at AHT’s seventh annual State of the D&O Market report.

2017 MYTHS & MISCONCEPTIONS OF BIOTECH CLAIMS

Biotech cases are manageable risks if they are defended correctly. Read this whitepaper for our analysis of Motion to Dismiss results.

SERVICES: BETTER TERMS, LESS RISK

When you work with our management liability professionals, you’ll work with highly experienced specialists who provide technical superiority and attention to the smallest details of coverage and service. AHT has designed a number of unique client services to enhance a company’s ability to:

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Secure favorable terms on coverage

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Provide a better risk profile

Give added comfort to your Board

Potentially cut the cost of some management liability coverages

PRODUCTS: LET MANAGEMENT FOCUS, WE’LL DO THE REST

 

AHT works with the top insurance carriers to offer a suite of coverages designed to address many of the liability issues related to running a company and protecting its management team. Our secure risk transfer and mitigation environment offers senior management and directors peace of mind to perform their duties without undue fear from the associated personal liability. We offer world-class expertise in every aspect: Policy Design, Negotiation & Placement, Claims Management, Risk Control & Mitigation

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Employment Practices Liability

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Directors and Officers Liability

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Venture Capital Asset Protection (VCAP)

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Errors and Omissions Liability

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Crime/Employee Dishonesty

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Fiduciary Liability

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Kidnap/Ransom Coverage

PRODUCTS: LET MANAGEMENT FOCUS, WE’LL DO THE REST

AHT works with the top insurance carriers to offer a suite of coverages designed to address many of the liability issues related to running a company and protecting its management team. Our secure risk transfer and mitigation environment offers senior management and directors peace of mind to perform their duties without undue fear from the associated personal liability. We offer world-class expertise in every aspect: Policy Design | Negotiation & Placement | Claims Management | Risk Control & Mitigation

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Employment Practices Liability

N

Directors and Officers Liability

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Errors and Omissions Liability

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Fiduciary Liability

DIRECTOR’S & OFFICERS INSURANCE 101

The scope and structure of Directors and Officers (D&O) Insurance has changed drastically over the past decade — making it a necessity to understand the basic insuring agreements and what each section is meant to insure. Our management liability professionals are highly experience at structuring programs that provide company’s the highest level of protection needed.

Most D&O Liability policies are broken down into three basic coverage sections:

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Insuring Clause A

The section of the policy is for claims made against individual directors, officers and employees of the company. It offers personal asset protection for the individuals. This coverage provision is for non indemnifiable loss only. These are claims where the company cannot legally or financially indemnify its individuals. This could occur during bankruptcy (financially unable) or for a derivative suit (legally unable). New coverage enhancements are also now advancing defense costs to individuals when the company wrongfully or rightfully refuses to indemnify.

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Insuring Clause B

This section of the policy is for claims made against individual directors, officers and employees of the company where the company can, and will, indemnify. It offers balance sheet protection to the entity. This coverage provision is for indemnifiable loss only and is first subject to the applicable retention.

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Insuring Clause C

This section of the policy is for claims made against the company directly. It also offers balance sheet protection to the entity.  The coverage provision is commonly for securities claims only and is subject the applicable policy retention.

ERRORS & OMISSION LIABILITY INSURANCE

 

For decades, AHT and Mason AHT have brokered Errors & Omissions Liability insurance policies for the industries we serve. You’ll benefit from our deep trading relationships with the worlds most respected and competitive E&O Liability insurers. We’ll navigate the insurance market for you. Whether you need a simple policy for a same day quote and purchase or a bespoke comprehensive program built for your risk profile and contract requirements, we’ll get it done.

Examples of the types of E&O Liability insurance we broker include:

  • Technology E&O Liability
  • Internet / Telecommunication Liability
  • Manufacturing E&O Liability
  • CRO / Life Sciences E&O Liability
  • BPO / Management Services E&O Liability
  • Venture Capital / Private Equity E&O Liability

Ouur E&O Liability insurance solutions are modular and configurable. Modules that can be added include:

  • Data and Network Security Liability
  • Privacy Breach Remediation Expenses
  • Privacy Breach Regulatory Fines & Penalties
  • Cyber Extortion
  • Media Liability
  • Employed Lawyers Professional Liability

And, examples of coverage configuration options include:

  • “Enterprise” Covered Products & Services
  • Unintentional Breach of Contract Coverage
  • Liability of Others Assumed Contractually (Indemnity)
  • “Cost of Contract / Return of Fees” as Covered Damages
  • Third Party Regulatory Fines & Penalties as Covered Damages
  • Pre-Customer Acceptance Claims
  • Third Party Product Recall Expenses

Importantly, we guide you about how these coverage modules and configuration options apply to your business. We use real world examples and communicate with you in language and presentation graphics you’ll understand. In this way, you can be sure the policy you select is configured in a way to strike the balance of cost and coverage that’s right for you. This guidance is also supported by Mason AHT’s industry leading E&O Liability Insurance peer benchmarking from Techassure.

“AHT has proven to be a far better partner than the national broker we once had. During the proposal process I was simply blown away by AHT’s in-depth technical expertise in management liability and their high level of service. They conducted the most comprehensive assessment of our risk exposures and coverages that we had ever received. They took the time to really understand our needs and devise a creative, tailored solution and marketed us properly to underwriters. The end result was improved D&O coverage at a 20% savings. It’s clear to me that partnering with AHT delivers the most short-term and long-term value to us.”

Chief Financial Officer

Real Estate Investment Trust

MARKET CAP

 

A significant drop in market cap drives securities claims and settlement amounts. By looking at a company’s market cap high and low in a given period, we can estimate what a settlement may look like as compared to historical settlements of companies with similar loss profiles. 

Using a customized database, we can estimate based upon your current market cap and what the range of a settlement might be based on the companies past or projected stock volatility. We use historical settlement data to predict what percentage of total market cap loss will actually be paid in a settlement.

ONLINE QUOTING SYSTEM FOR MICRO-CAP COMPANIES

 

AHT offers the only available online tool for quoting and binding a $1M limit of public D&O insurance for companies with market caps below $50M. Available for public and private companies, as well as not-for-profit organizations, Argo MicroCap D&O coverage can be customized to suit the needs and risk management profile of nearly any small business entity.

 

GET THE PROTECTION YOUR COMPANY NEEDS – QUICKLY & EASILY
  1. Enter your company’s ticker symbol.
  2. Answer a few questions.
  3. Submit your request!

Talk to Our Management Liability Professionals