In a recent piece we wrote about the importance of a top-down risk management culture. In the course of developing a risk management program, it’s important to include the people at the top not just as trend-setters, but as sources of risk in their own right.
Executives and workers’ compensation
Like any employee, executives can get injured on the job. Long hours at a desk with poor ergonomics can lead to long-term workers’ compensation claims for things like strained muscles and ligaments, back problems, and so on. Executives of high-risk industries, like construction, need a similar level of safety training as field managers before they step foot on work sites.
Executives are also more likely than other employees to be injured attending work-related events that are away from the office. Depending on the state’s laws, a work lunch, after-work networking event, or weekend golf with a client might all be covered by workers’ compensation. Insurance needs to account for these risks to protect the business from significant loss.
Some risks are unique to executives
A number of specialized insurance types apply to losses that are unique to the executive class. Sometimes referred to “executive risks” these types of insurance can be important for many businesses. Here are a few examples:
- Directors and Officers Liability is a complex area of risk. On the one hand, in many jurisdictions an officer or director of a company bears personal liability for certain mistakes. On the other hand, many companies have agreed to provide indemnification for lawsuits against their directors or officers for matters arising out of their duties, passing the risk from the individual to the business. Companies in this situation need to be sure to account for their risk through insurance or by setting aside a fund.
- Crime. When an executive commits a crime under the auspices of the company, the company itself can be subject to significant penalties. Even when a business’s leaders have a spotless record, it can be wise to purchase liability insurance to defend against this sort of loss.
- Employment Practices Liability. Being sued for wrongful termination, unlawful discrimination, or other employment violations can be expensive and damaging to a company’s reputation. Specialized insurance can protect a company by providing for the cost of legal representation and other expenses associated with this risk.
Gunnin Insurance guides clients through the risk
Gunnin’s team of insurance professionals has spent decades helping clients get more from their risk management programs. Our service starts with a comprehensive review of a business’s risks. In turn, we develop insurance recommendations and a detailed plan for taking the business from where it is to where it wants to be. To make an appointment to speak with one of our professionals, give Gunnin a call today.