Executive and Financial Risk Insurance

Executive and financial risk insurance to protect your leadership and your organization

Executives are capable of amazing things. Building teams, creating revenue, developing strong products and profitability.

They also face unique risks that require a delicate and in-depth approach, and they need tools and coverages to adequately protect them and the companies they serve. The Gallagher Executive and Financial Risk practice is based on our understanding of the special needs of executives. We focus on all aspects of executive liability, including professional placement services for executive and financial risk insurance, and mergers and acquisitions (M&A) guidance. We're prepared for the potential connections to Cyber Liability and Employment Practices Liability (EPL) insurance and can educate clients on the new reality of event-driven Directors and Officers (D&O) claims.

We listen, use high-level tools to assess your industry's environment and produce a custom executive liability solution that aligns with your risk exposure and supports your executive team and organization.

Protection solutions for the entire spectrum of executive risk liabilities

For any key executive liability exposure or risk, Gallagher has developed an in-depth and broad insurance and risk management practice that encompasses processes, markets and strategies that provide comprehensive protection for executives and their organizations. Our Executive and Financial Risk practice is built upon a strong foundation of three key services to deliver truly best-in-class coverage.

1. Data driven quantitative analysis. With benchmarking and models, we identify where and how large your exposures are, and give you information to help you select the right insurance coverage structure to mitigate future risks. This assistance includes closely monitoring litigation and liability trends and statistics.
2. Technical versus transactional brokering, including contract and coverage analysis. We analyze all of your policies and coverages to identify gaps in your coverage. We use court cases and business partners in the legal arena to fine-tune our carrier requests and ensure carriers make the requested improvements. In addition, we use carrier qualifications and performance system information, along with your insurance company experiences and preferences, to determine which insurance companies will be considered as potential underwriters for specific parts of your insurance program.
3. Claims advocacy. Gallagher is a true leader in claims advocacy, having a dedicated claims advocacy team that includes specialized attorneys who work with carriers and clients throughout the entire claims process to make sure your claims are rightfully paid. In many cases, we can get claims paid for which other brokers are unable to gain insurance recovery. Claims advocacy is a key differentiator for Gallagher.

Directors and Officers (D&O) Liability insurance

Board and officer leadership in any institution faces unique risk and exposures, including lawsuits from shareholders as well as employees, competitors, suppliers and the government. Our team can construct policies that customize the protection your executives and your organization expect in order to run their business, and we reassess your insurance and risk management needs as business circumstances change. We can provide actionable solutions by monitoring market changes in D&O policy provisions. We can also evaluate your D&O programs, illustrate how your coverage stacks up in the market and provide a solid metric and decision-making tool to board members.

Special-Purpose Acquisition Companies (SPACs)

A sophisticated financing tool deserves an equally sophisticated risk mitigation strategy. Our specialists are here to help you secure the right D&O insurance policy, ensuring special-purpose acquisition companies (SPAC) management teams and directors are protected throughout the initial public offering (IPO) and de-SPAC process.

Our comprehensive services include:

• D&O coverage before and after an IPO
• M&A Representations and Warranties insurance for your business combination
• Risk management and claims support at every stage
• Creative, deal-specific solutions, including:
  • Errors and Omissions (E&O) coverage
  • Cyber liability
  • Tax liability
  • Contingent liability

IPO and direct listings

The IPO — or direct listing — process carries risk for the company going public as well as its directors and officers. You'll need a specialist to work through all the D&O insurance issues before, during, and after the process of going public, as well as during your life as a public company. We support the development of your risk transfer philosophy by asking the right questions, providing critical exposure analytics, and advising on ways to mitigate your risks.

Employment Practices Liability (EPL) insurance

From sexual harassment to wrongful termination and many other potential employment perils, we have Employment Practices Liability (EPL) insurance coverage ready to protect against class actions and single plaintiff claims. Our models use client data to predict potential exposure and guide our advice on limits. We also use benchmarking and contract analysis to help meet the challenges employers face.

We have an EPL loss database and a database for Wage and Hour losses. This data enables us to model EPL risks for single plaintiff exposure, discrimination class-action claims and much more. Because the potential size of EPL claims is directly related to the size and diversity of the insured organization, our loss model reveals exposure based on the number of employees, type and mix of employees, and location of operations. We also provide multidimensional EPL benchmarking reports as well as a review of historical claims with EPL losses or Wage and Hour losses costing more than $1 million, taken from an extensive database that we initially created in 1997.

Fiduciary Liability (Pension and Welfare Liability) insurance

We work with corporations to help protect their Employee Retirement Income Security Act (ERISA) fiduciaries and fiduciary committees and any key personnel designing or implementing 401(k) or pension plans for their employees and retirees. We have proprietary models to measure risk and assist in limits selection.

Employee Dishonesty (Crime) and Fidelity Bond insurance

Our proven methodology for discovering the right coverage limits for crime exposure includes:

• Peer analysis using industry-leading third-party databases
• Exposure index developed by the Surety Association of America (SAA) in cooperation with the American Institute of Accountants
• Analysis of our clients' required bond limits as dictated under ERISA

We also review your coverage to make sure your carrier allows for appropriate treatment of older incidents and uses triggers for insurance that are not too difficult to prove.

Kidnap, Ransom and Extortion Liability insurance

We offer specialized coverage for executives, employees and their families, whose work and travel put them at risk of kidnapping and possible extortion. This insurance coverage includes highly trained rescue and security personnel. This coverage is a must for all companies, and we can analyze both coverage and carrier response teams that are the essential value of the product. And yes — we can secure ransomware coverage for you as well.

Cyber Liability insurance

Beyond our coverage expertise, we have proprietary analytics that analyze your technology, media and professional liability exposures based on your risk profile and risk control techniques. Our analysis takes into account multiple methods, including peer analysis or benchmarking, historical claim loss analysis and a series of complementary quantitative loss models that combine to assess this complex risk. Our models are the first of their kind, leading the brokerage industry as true cyber pioneers.

M&A Transactional Insurance, including Representations and Warranties and Tax Mitigation Insurance

We provide analysis, custom policy forms and pre-M&A analysis that lead to selection of the best markets for your transaction and ultimately deliver customized coverage for buyers and sellers in M&As. We have several dedicated attorneys at Gallagher to assist in the process from start to finish.