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We are pleased to provide you with resource materials produced by the Gallagher Management Liability practice, by other Gallagher practices, or even outside sources that we believe might offer you useful insights. The topics covered include management liability risks and potential protection options you may need. Our materials include white papers, articles, case studies, webinars, market reports and more.

Stay up-to-date on the Management Liability market and risk issues that can affect your organization.

  • Market Conditions January 2018: Financial Institutions – Banks [ Market Report]

    This is a general outlook/forecast of anticipated market conditions within the Asset Manager and Professional Liability space.

  • Market Conditions 2018: Asset Manager Management & Professional Liability [ Market Report]

    This is a general outlook/forecast of anticipated market conditions within the Asset Manager and Professional Liability space.

  • Market Conditions March 2018: Asset Manager Management & Professional Liability [ Market Report]

    This is a general outlook/forecast of anticipated market conditions within the Asset Manager and Professional Liability space.

  • Market Conditions - 2018 D&O Market Stable Amid Adverse Claims Trends [ Market Report]

    As we look to forecast the state of the D&O marketplace in 2018, a close examination of 2017 events and trends is critical. The D&O market in 2017 was best described as a market in flux. The underlying tension in the D&O marketplace was palpable. The numbers of claims increased dramatically, but pricing remained competitive for many risks and flat for most.

  • Market Conditions 2018: Cyber Liability [ Market Report]

    2017 was a record year for cyber attacks, and not in a good way. According to Risk Based Security, Inc., there were 3,833 breaches reported through the end of September 2017, exposing over 7 billion records. This represents an increase in the number of reported breaches of 18.2%, compared with the same period in 2016, with the number of exposed records up 305%.

  • Market Conditions 2018: Financial Institutions - Banks [ Newsletter]

    The Management Liability insurance marketplace for Banks remained largely competitive throughout the 2017 term, fundamentally due to the continued availability of underwriting capacity bolstering competition among insurers.

  • Market Conditions 2018 - Commercial Crime [ Market Report]

    The market continues its infatuation with social engineering and/ or impersonation fraud losses and insurers’ coverage of same. Social engineering scams involve crooks who trick insureds into transferring money by impersonating clients, vendors or the insured’s own executives. Almost all fidelity insurers offer social engineering coverage; however, it is important to note that coverage is not standardized and is most often subject to a sublimit.

  • Market Conditions - Real Estate [ Market Report]

    The environment for interest rates is all but confirmed for increases, and yet the cycle continues. Its durability doesn’t seem threatened by either a ready supply of equity or debt or even the possibility of oversupply. We have been noticing of late that ‘sectors’ are getting a deeper review by the insurance underwriters. Whereas in the past, the good results for insurance companies professional real estate risk was more uniform overall classes, we have seen that change more in the last 12 months. The ‘Amazon’ effect has put malls and strip shopping centers into a much greater focus and multifamily is also perceived to on its way to an oversupply issue. These two classes are seeing a higher level of scrutiny from the underwriting community.

  • Market Conditions 2018 - Employment Practices Liability [ Market Report]

    Employment Practices Liability is in the spotlight as we enter into 2018 with a cultural shift emboldening victims to speak out, bringing a wave of public sexual harassment allegations. The headline allegations may lead to large loss payouts, and it is likely that there will be an increase in sexual harassment allegations at all companies, along with increased focus from management teams and regulators across the country.

  • Market Conditions 2018 - Fiduciary Liability [ Market Report]

    Fiduciary Liability renewals were stable in 2017 and this coverage line continues to be the least affected in Management Liability. There have been sizable settlements in this line over the past 12 months that are noteworthy; however these are not anticipated to reflect a change in overall market condition.

  • Market Conditions 2018 - Kidnap & Ransom Insurance [ Market Report]

    The marketplace for Kidnap and Ransom (K&R) insurance remained stable and competitive through 2017. Premiums are as low as $400 per million limit for companies with limited foreign exposure (locations or travel). For companies with higher exposures including foreign travel and locations, premium is around $1,000 - $3,000 per million of coverage limit.

  • Market Conditions 2018 - Private and Nonprofit Directors & Officers Liability [ Market Report]

    The Private and Nonprofit D&O market trends have remained static over the last few years. Rates have continued to remain flat for the most part barring any significant changes or increased risk profile. As such, capacity is still vast and competition among markets can be fierce, so coverage enhancements are readily available despite an increase in both the frequency and severity of claims.

  • Market Conditions 2018 - Representations and Warranties Insurance [ Market Report]

    Representations and Warranties (R&W) insurance was designed nearly twenty years ago to provide insurance coverage for breaches of representations and warranties by the seller in a purchase agreement.

  • Market Conditions 2017 - Fiduciary Liability [ Market Report]

    Fiduciary liability renewals were stable in 2016 and this coverage line continues to be the most stable management liability coverage. There have been sizable settlements over the past 12 months that are noteworthy; however, they are not anticipated to reflect in a change in overall market condition.

  • Market Conditions 2017 - Life Sciences Public Directors & Officers [ Market Report]

    In 2016, public Directors & Officers Liability clients continued to benefit from a competitive insurance market, experiencing both rate reductions and expanded coverage terms. Given the record-high number of securities class actions filed in 2016— 300 in Federal court alone, a 32% increase over 2015 it may appear that premium rates and litigation activity do not necessarily correlate.

  • Market Conditions 2017 - Insurance Company Professional Liability [ Market Report]

    In 2016 primary insurers proved to be fairly disciplined in their underwriting. Increases varied based on the risk characteristics, but for most accounts year over year increases were generally flat despite the fact that some carriers were targeting higher increases. Absent adverse claims development, even accounts with high risk profiles found a fairly stable market.

  • Market Conditions 2017 - Public Company Directors & Officers Liability [ Market Report]

    Following an inflection point around April 2015, the market quickly softened for both commercial and financial institutions D&O. Driven by an influx of new and renewed capacity, forgiveness was granted to many market segments previously viewed as troubled, with the better risks within such sectors seeing healthy decreases in premium in some cases.

  • Market Conditions 2017 - Cyber Liability [ Market Report]

    As we realize the extent that technological advancements have had on all organizations, we take an insurance perspective to look back at 2016 while also looking forward to 2017. Overall, 2016 was a year of stability for the cyber insurance industry. However, a relatively new insurance concept has evolved; cyber insurance can now be referred to as “traditional” cyber insurance.

  • Market Conditions 2017 – Kidnap & Ransom Insurance [ Market Report]

    The kidnap and ransom (K&R) insurance marketplace continued to be competitive throughout 2016 and is anticipated to remain competitive in 2017. For companies with limited foreign travel and locations, premiums are as low as $400 per million

  • Market Conditions 2017 – Asset Manager Management & Professional Liability [ Market Report]

    While the future regulatory landscape under the new administration is still uncertain, the outlook in the insurance marketplace for asset manager management and professional liability insurance remains predictable. 2017 appears to be another year of favorable purchasing for asset manager insurance, on the heels of two plus years of soft market conditions.

  • Market Conditions 2017 - Real Estate [ Market Report]

    As 2017 begins, the global environment for ‘change’ seems to be everywhere on a geo-political basis, the likes of which we have not witnessed in quite some time. With this uncertainty, hard assets tend to be viewed as a safe haven and certainly the real estate market has benefitted from the current environment.

  • Market Conditions 2017 - Commercial Crime [ Market Report]

    Commercial Crime insurance renewal premiums were “stable” (+/- a few percentage points) in the first three quarters of 2016. Internal distractions within two of our top-ten fidelity insurers (the Ace/Chubb merger and AIG’s fidelity restructuring) diminished the level of competition in 2016, and we expect this to continue into 2017.

  • Market Conditions 2017 - Employment Practices Liability [ Market Report]

    With a relatively static – albeit heightened – claims environment and a corresponding pipeline of open claims, many insurers are seeking rate increases for Employment Practices Liability (EPL) insurance coverage. However, newer entrants into the market over the past three to five years have led to a stable market.

  • Market Conditions 2017 - FI Broker-Dealer [ Market Report]

    Consolidation of independent broker-dealer firms and preparation for the “Fiduciary Rule” are two pressing issues impacting the retail investment industry. Last year, the retail investment industry experienced major change.

  • Market Conditions 2017 - Financial Institution Bond [ Market Report]

    Financial Institution Bond insurance renewal premiums fell within a “stable” range (+/- a few percentage points) in 2016. Internal distractions within three of our top-ten financial fidelity insurers (Ace/Chubb merger, AIG’s fidelity restructuring and Zurich’s diversified financial restructuring) diminished the level of competition in 2016, and we expect this lackluster competition to continue into 2017.

  • Market Conditions 2017 - Financial Institutions-Banks [ Market Report]

    The Management Liability insurance marketplace for Banks remained highly competitive throughout 2016, largely due to an abundance of underwriting capacity fostering competition among insurers.

  • Market Conditions 2017 - Healthcare Management Liability [ Market Report]

    Perhaps no single event in modern U.S. history may have a greater impact on the U.S. healthcare sector than the 2016 Presidential Election. Do the results of the election indicate a mandate to repeal and replace the Affordable Care Act (ACA)?

  • Market Conditions 2017 - Private-Nonprofit D&O [ Market Report]

    As the U.S. economy continues to recover, so too have the businesses of most of our private and nonprofit clients. As a result, D&O markets generally have seen marginal rate changes from -1% to 2%, whereas previous rate increases ranged from 0% to 5% when there was no change in financial condition, exposures or losses.

  • Market Conditions 2016 - Asset Manager Management & Professional Liability [ Market Report]

    In 2015, we saw a pronounced shift in the asset manager professional liability insurance market, beginning the year as relatively stable and finishing as very soft. This time last year, we were seeing all of the earmarks of the beginning of a soft professional liability insurance market for asset managers.

  • Market Conditions 2016 - Directors & Officers Liability for Life Sciences Marketplace [ Market Report]

    In 2015, the D&O market as a whole experienced a competitive environment, with new and increased capacity leading to healthy premium decreases for some companies.

  • Market Conditions 2016 - Public Directors & Officers Liability [ Market Report]

    The D&O marketplace took a rather abrupt shift midway through 2015 after almost exactly four years of D&O price increases for nearly all companies, regardless of market segment.

  • Market Conditions 2016 - Cyber Risk Insurance [ Market Report]

    The year 2015 should be remembered as the year that the cyber insurance market took a first step toward risk engineering following the mega breaches of 2013 and 2014.

  • Market Conditions 2016 - Fiduciary Liability [ Market Report]

    Fiduciary liability insurance renewals were stable in 2015. This coverage line continues to be the least affected by market changes of all management liability coverages.

  • Market Conditions 2016 - Financial Institution - Bonds [ Market Report]

    Favorable loss ratios and new capacity led to improved market conditions in 2015. Commercial banks with healthy risk profiles saw flat renewal premiums.

  • Market Conditions 2016 - Private and Nonprofit Directors & Officers Liability [ Market Report]

    As the U.S. economy continues to recover, so too have the businesses of most of our private and nonprofit clients. As a result, D&O markets generally have seen marginal rate increases from 0% to 5%, whereas previously rate increases ranged from 5% to 10% when there was no change in financial condition, exposures or losses.

  • Market Conditions 2016 - Broker-Dealer Insurance Marketplace [ Market Report]

    This market report will provide a snapshot on current industry topics, industry E&O snapshot, claims activity and our forecast for 2016.

  • Market Conditions 2016 - Insurance Company Professional Liability (ICPL) [ Market Report]

    In 2015, primary insurers were disciplined in their underwriting for the most part. Increases varied based on the risk characteristics, but for most accounts, year-over-year increases were generally flat despite the fact that some carriers were targeting higher increases.

  • Market Conditions 2016 - Kidnap & Ransom Insurance [ Market Report]

    The marketplace for kidnap and ransom (K&R) insurance remained stable and competitive through 2015 and we expect this continue into 2016. Premiums are as low as $600 per million for companies with limited foreign exposure (locations or travel).

  • Market Conditions 2018 - Healthcare Management Liability [ Market Report]

    The attempted repeal and replacement of the Affordable Care Act has been one of the most closely watched and anticipated political events of 2017. Attempts to dismantle the signature achievement of the Obama administration have been discussed and debated before our eyes on every news outlet in the United States.

  • Market Conditions 2016 - Real Estate [ Market Report]

    The strong real-estate cycle continued to march forward and even the much discussed concern over the Federal Reserve’s increase in interest rates in 4Q2015 did not seem to have an effect on slowing it down. Investors, especially foreign capital, continued to want exposure to U.S. real estate in all of its forms, and this has driven values higher.

  • Market Conditions 2016 - Financial Institutions - Banks [ Market Report]

    This report reviews the current management liability state of the market, current trends in pricing, terms and market capacity, claims activity and other pertinent factors specifically for the banking industry. Lastly, we provide a forecast of anticipated market conditions in 2016.

  • Market Conditions 2016 - Commercial Crime Insurance [ Market Report]

    Favorable loss ratios and new capacity did, indeed, lead to softening market conditions in 2015. Underwriters’ quotations included coverage enhancements as well as modest premium reductions. Crime insurance market observers are really focused on the coverage enhancements rather than pricing.

  • Market Conditions 2016 - Healthcare Management Liability [ Market Report]

    The healthcare industry in the United States continued to see tremendous changes in the way it delivers care and the compensation received for the care provided in 2015. The turbulence created by the Affordable Care Act (ACA) continues and many providers are struggling to maintain profitability in the current reimbursement and regulatory environment.

  • Market Conditions 2016 - Employment Practices Liability [ Market Report]

    A leading indicator of the Employment Practices Liability (EPL) marketplace is the number of Equal Employment Opportunity Commission (EEOC) claims filed and the number of EEOC claims is directly related to the fortunes of the economy. As a result of the ongoing recession, by 2011, the number of discrimination complaints reached an all-time high of 100,000. However, as the economy improved, EEOC claims decreased, and by 2014, EEOC claims were back to pre-recession trends.

  • Market Conditions Update: 2015 Real Estate Market [ Market Report]

    The Gallagher Market Conditions Update: 2015 Real Estate Market report notes that underlying fundamentals in commercial real estate continue to improve and are helping to drive successful insurance negotiations for clients. Commercial valuations are rising rapidly and financing is readily available. Improved opportunities in bank lending and low interest rates also are driving the business at the moment. So what is on the horizon for 2015?

The Advisor updates are published throughout the year to better assist management and executive teams in understanding topical issues, guidelines and liabilities they may encounter along with protection coverages they may want to consider.

  • Advisor - What the cake doesn't say [ Advisor Newsletter]

    The United States Supreme Court recently issued a ruling in Masterpiece Cakeshop v. Colorado Civil Rights Commission (Masterpiece Cake), in which the Court reversed a holding of that Colorado agency. Despite hyperbole on both sides, Masterpiece Cake does not represent a departure from current law. That law, however, is far from consistent. This article explains what the Court’s holding means for our clients.

  • REIT Settles Investor Case for $73M [ Advisor Newsletter]

    While this sounds like a fairly conventional shareholder securities, case, what sets it apart is is that the defendant is a real estate investment trust. Such trusts, while occasionally traded publicly, are often not considered targets of shareholder suits. As is represented in this case, this belief is short sighted. There are no exemptions in the federal or state securities law for real estate trusts.

  • Advisor - Supreme Court Upholds Mandated Arbitration & Prohibition of Collective Action in Employment Agreements [ Advisor Newsletter]

    The Supreme Court has ruled in Epic Systems Corp. v. Lewis1 that arbitration agreements requiring individualized proceedings are enforceable and the implications on class or collective actions by employees are not in violation of the National Labor Relations Act’s (NLRA) phrasing relating to “other concerted activity.” This article analyzes the ruling and its implications for our clients.

  • Advisor - When is Corporate Fraud the Board’s Fault? [ Advisor Newsletter]

    One of Janet Yellen’s last acts as head of the Federal Reserve was to impose an unusual settlement condition upon Wells Fargo: as part of the consent decree, Wells Fargo would agree to the removal of four directors.

  • Advisor - Supreme Court Holds that 1933 Act Cases May Be Brought in State Court [ Advisor Newsletter]

    On March 20, 2018, a unanimous Supreme Court held in Cyan, Inc. v. Beaver County Employees Retirement Fund, No. 15-1439, (Cyan) that the Securities Litigation Uniform Standards Act of 1998 (“SLUSA”) does not eliminate state courts’ jurisdiction over claims brought solely under the Securities Act of 1933 and those cases cannot be removed to federal court.

  • Advisor - The Sexual Harassment Boom Impact on EPLI Insurance [ Advisor Newsletter]

    Sexual harassment allegations are sweeping the United States, fueling a cultural shift not seen since Anita Hill’s allegations against Clarence Thomas almost thirty years ago.

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  • Defense Without Consent - Resetting Communication Channels [ Case Study]

    A large insured presented a sizable employment claim to their insurers and required defense counsel. The insurers specifically told the insured that their current counsel selection was not approved. The insured continued to use their choice of law firm but did not manage the claim adequately with the insurer. When the case was resolved, how did this approach impact the claim process?

  • Articulating an Argument Based in Case Law [ Case Study]

    Assisted living facilities require each resident signs a contract with terms and conditions prior to moving in. One resident couple sued a facility alleging that it instituted a rate increase that they could not afford. Was the facility liable? If so, what was the impact to the facility? Did their coverage adequately protect them in the process?

  • Articulating an Argument Based on the Carrier's Policy Language [ Case Study]

    A lawsuit was filed against the insured bank alleging that the bank was involved in a scheme to defraud investors. The bank was advised by the insurer that there was no coverage. The insured asked Gallagher’s Management Liability Practice team to assist in getting the insurer to reconsider the denial of the claim. Working with the insured, Gallagher used the carrier’s own policy language to get the insurer to reverse its decision.

  • Above and Beyond Research [ Case Study]

    An insurer’s reservation of rights letter contained language stating there was no coverage for punitive damages as a matter of public policy. The insured asked Gallagher’s Management Liability team to assist in getting a favorable resolution. While even law firm summaries of the 50 states and their positions on punitive damages state that punitive damages are not insurable in the state in question, no legal support could be found to corroborate that position.

  • Charlatan Defrauds Bank Investors [ Case Study]

    The insured bank was sued by a man claiming that the bank had assisted a charlatan in defrauding investors by lending the fraudster money and supporting his shady businesses. Because of the bank’s support, the plaintiff wrongly believed the charlatan was legitimate and was induced into investing. What was the bank management or board's exposure?

  • Crime Loss [ Case Study]

    A large, public university experienced a large employee dishonesty fidelity loss and filed a claim with their insurer. The loss was perpetrated by an employee in the treasury department by providing university money to a Ponzi scheme as an investment. It was also discovered that the employee stood to gain from doing so with an agreement that the Ponzi scheme leaders would provide the employee with some of the funds on the back end of the transaction. To read more, view our Gallagher Management Liability case study.

  • Going Public: A D&O Discussion [ Whitepaper]

    The purpose of this paper is to explain the basis of liability for a public company, discuss the D&O marketplace with respect to IPO exposures, and set forth what you can expect from us as your broker in the process.

  • The SEC Issues New Guidance on Cybersecurity [ Whitepaper]

    Businesses of all kinds and sizes need to protect their customer information and other data. It is beyond dispute that non-tangible assets - especially those stored on computers - are critically important to virtually every business. Consider: most buildings are replaceable. The formula for Coca Cola is not.

  • Representations & Warranties Insurance [ Whitepaper]

    Representations & Warranties (Reps & Warranties) insurance is designed to provide insurance coverage for breaches of representations and warranties statements made by the seller in a purchase agreement. This whitepaper will discuss quick marketplace history, items of the purchase agreement to insure and underwriting.

  • Directors & Officers Liability Insurance for Private Companies [ Whitepaper]

    A frequent (and serious) misconception is that companies without publicly traded stock do not require Directors & Officers Liability insurance (D&O). In reality, much of the case law governing the duties of directors and officers arises in the context of private held companies. This paper is intended to identify the exposures faced by private company directors and officers, and how D&O insurance can mitigate their financial risks.

  • Assessing D&O Risk for Publicly Traded Corporations [ Whitepaper]

    Gallagher D&O Modeling Evaluation (DOME) supplements benchmarking and the analysis of actual historical large D&O losses as a method for assessing D&O risk – one which our experience shows to be the most accurate. Our D&O limits model is based on Gallagher’s proprietary models and algorithms and relies wholly on client data to project potential liabilities. The data used by the model includes the client’s specific ownership structure, industry and a variety of unique trading data such as market capitalization and price volatility. The model estimates the amount of D&O insurance coverage required to cover most D&O claims. In this paper, we will explore recent results from the National Economic Research Associates’ (NERA) 2014 report on D&O liability and compare them to our model assumptions.

  • Risk Management Workshop [ Event]

    Risk Management Workshop going over topics such as Workers Compensation, CORE360, Management Liability and Healthcare Reform.

  • Public Universities Face New Frontier of First Amendment Challenges [ Whitepaper]

    Many people are reacting to a story about a professor, Steven Salaita, whose recent job offer from the University of Illinois was rescinded following his polarizing personal tweets about Israel. The situation has sparked protest and commentary on First Amendment rights and potential risks to universities. Reactions aside - and regardless of the outcome, how could this affect the university and its image?