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When it’s Important to Stay in the Know.
Liability Coverages Your Company Should Be Considering
Commercial general liability (CGL) coverage is among the most effective ways to protect your business and its assets in the event your company is found liable for fraudulent claims. Claims of negligence or wrongdoing can be detrimental to a company if not properly covered.
In some instances, even CGL coverage may not be enough. If your company depends on executives or a board of directors for financial stability and to attract investors, specialty coverages, such as directors & officers (D&O) liability insurance, may be needed. It can help to safeguard those who generate the most revenue and prevent vulnerability to new risks as the company grows.
If you're considering purchasing D&O coverage, it's important to understand the trends which could impact costs.
Talent Trends
More and more industries are noticing the effects of the great talent reshuffle and the competition of today’s candidate-driven job market. Top executives are no exception to widespread resignations, but there are benefits to ensuring these individuals feel
they are valued and protected in the event of a lawsuit.
D&O Lawsuits
Between the growing popularity of corporate social responsibility and environmental, social and governance (ESG) topics, many entry- and associate-level employees are subjecting their company’s leadership to more scrutiny. Mismanagement claims are projected to continue rising through the end of the year, leaving directors and officers at risk
of litigation.
Cyberattacks
Cyber threats have become more common, and more difficult to prevent without the right cybersecurity software. Even with proper software, it’s important to update risk management procedures to ensure employees at every level are aware of the risks, understand warning signs to watch out for and know how to report a data breach. The growing number of cyberattacks has also increased the number of negligence allegations filed against corporate leaders who are held responsible by investors and shareholders.
As companies renew and review coverages, it’s important to consider the costs and unique risks associated with your business. Monitoring these trends and reviewing your insurance policies is a good place to start. BCH is here to help you find the right coverage to protect your business and those within it when it matters.
Insight on Commercial General Liability Coverage
With insurance rates on the rise, many business owners are determining whether certain liability coverages are worth the cost. First and foremost, it’s important to understand the perceived risk associated with a business’s operations. Factors such as regional regulations and industry greatly influence the limit of liability. Here are a few ways to protect your business in addition to CGL coverage:
- Focus on establishing a high standard for product quality control
- Maintain accurate company records
- Implement thorough training and education programs
- Ensure safety and compliance information is up to date
Read Coverage Insights for General Liability Insurance for helpful information about defending your business against costly claims.
2022 General Liability Insurance Market Outlook
Does your insurance policy match up with your business needs? Developments and trends in the general liability market have made
it difficult for companies to secure high-coverage policies. Between social inflation concerns and the growing number of costly liability claims, policyholders are experiencing rate increases and stricter underwriting standards. Download the General Liability Insurance Market Outlook report for more insights into rate increases and tips for insurance buyers.
