Munich Re Specialty Insurance
management-liability
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E&S Management Liability

Protection for private companies and non-profit organizations from today’s growing risks

Today’s businesses and non-profit organizations face increasing risks in our changing market, from an escalation in lawsuits targeting executives, to employment-related offenses, mismanagement, ERISA-related claims, fraud, theft, and more. Through its  A+ rated carriers, Munich Re Specialty Insurance  makes available to its select wholesale brokers best-in-class E&S Management Liability solutions that deliver critical, closely tailored coverage to help meet clients’ toughest challenges.

Comprehensive coverage

  • Directors and officers (plus entity): Protects individuals from personal losses arising out of serving as a director or officer of a business or organization and protects the entity as well.
  • Employment practices: Protects the company or organization from losses arising out of employment-related offenses such as wrongful termination, harassment, discrimination, whistleblower retaliation, and other offenses.
  • Fiduciary: Protects the entity and insured persons from losses arising from ERISA or ERISA-related type claims, mismanagement, and legal liability.
  • Crime: Protects the organization’s balance sheet from fraud and other dishonest acts by employees or third parties. 

Powerful advantages for your clients

Highly-customized coverage – Creative, tailored coverage to meet even the most complex client needs

Best-in-class underwriting – Deep expertise and a commitment to delivering innovative, value-added solutions

Superior claims service – Our in-house claims team includes attorneys with strong analytical and problem-solving skills, and deep backgrounds in legal strategy and litigation management

Strengths of our A+ carriers – Financial stability and capacity 

Management Liability coverage details

Up to $10,000,000 limit, including Excess and A-side coverage

Directors & Officers (plus entity)

Employment Practices

Fiduciary

Crime

Excess coverage

A-side coverage

Duty to defend

Punitive damages (where insurable by law)

Automatic coverage for subsidiaries

Defense cost allocation 100%

Automatic acquisition threshold 100%

Liberal reporting requirements

A+, XV (Superior) A.M. Best financial strength rating

We also offer policy forms with market competitive terms and conditions.

 

Primary Management Liability coming August 2021.

 

Target classes

Broad range of classes, including, but not limited to: 
Consulting
Hospitality
Manufacturing
Real Estate
Non-Profit
Retail
Service Industry
Technology
Wholesalers

Claims scenarios

D&O — A disputed company valuation

A retail company’s minority shareholders wanted to sell their shares, which the company offered to buy out based on a valuation of $10,000,000 that was done two years prior. The next year, the company agreed to an acquisition offer at a $50,000,000 valuation. The minority shareholders filed a lawsuit alleging that the company’s value was misrepresented due to the outdated valuation, and that it had already fielded acquisition offers over $10,000,000. 

Employment Practices Liability — Accusation of wrongful termination

A company in the service industry received a complaint from one of its customers alleging that its Executive Vice President of Sales (EVP) made unwarranted sexual advances toward one of its employees and threatened to terminate the business relationship unless the EVP was fired. The company’s CEO fired the EVP for gross misconduct as per the EVP’s employment contract. The EVP filed suit against the company and the CEO for wrongful termination and breach of employment contract, alleging that the company did not follow an internal employment policy to investigate allegations before termination, and that the CEO had an ulterior motive for terminating his employment, given the EVP had a large bonus coming up. The EVP demanded over $3,000,000 in damages for lost wages/bonus and reputational injury.

D&O — Price-fixing investigation

A manufacturing company received an investigative order from the state attorney general’s office centered around whether the company conspired with its competitor to control product pricing. After an 18-month investigation, there was no finding of price fixing by the company or its competitor. However, the manufacturing company incurred $750,000 in defense expenses to respond to the investigation.

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Our underwriting team stands ready to deliver creative solutions to clients’ complex coverage needs and to providing service excellence, flexibility, and fast responses (even if it’s a no). We are dedicated
to building relationships based on trust and transparency.
Contact our experts
Marcia Blanco
Marcia Blanco
Head of Financial Lines
E&S Underwriting
nan-murphy
Nan Murphy
Senior Vice President
Management Liability
Wennmacher Corey
Corey Wennmacher
Vice President
Management Liability

About Munich Re Specialty Insurance

Munich Re Specialty Insurance (MRSI) is a description for the insurance business operations of affiliated companies in the Munich Re Group that share a common directive to offer and deliver specialty property and casualty insurance products and services in North America.

For more information on MRSI, including licensing, regulatory-required, and other information on
the operating companies, please click here.