PML policies also
could contain fiduciary liability coverage, which covers many of the
aforementioned claims against fiduciaries of employee benefit plans,
pension benefit plans and welfare benefit plans.
PML policies often
are claims-made and reported policies. This means that coverage is
triggered when a claim is made and reported during a specified time
period. Agents must make sure that clients understand the policy's
definition of claim and the reporting requirements. This is
particularly important with EPLI claims, which may originate from an
administrative charge filed with the Equal Employment Opportunity
Commission or a state equivalent. Such a charge may constitute a claim
under the policy.
policies are duty-to-defend policies. This means that if your clients
get sued on a covered claim, then the insurance company will secure
defense counsel for them. Having the right defense counsel is crucial
to defending a claim. Getting an early assessment of your client's
exposure from legal counsel is an important part of the defense
process. Therefore, an insurance company with experience in providing
panel counsel surrounding EPLI, D&O and fiduciary liability claims
can further benefit your client.
In addition, PML
policies may have policy enhancements. For instance, crisis event
expense coverage is a type of first-party coverage that may come into
play where there is a public announcement of certain events, such as a
layoff of your client's employees, a cyberattack against your client,
or your client's intent to file bankruptcy.
practices enhancement, which provides a defense costs sublimit for
certain types of alleged immigration violations, is another enhancement
that is offered in the market. A wage and hour sublimit for defense
costs is another possible add-on because those costs often are not
covered by a PML policy.
As a bonus feature,
some insurance companies offer their insureds the use of a hotline.
This allows your clients to engage in confidential communications with
experienced defense counsel and receive general legal advice about
human resources and employment issues before a sharknado is in the
forecast—or before a claim is made—without incurring additional costs.
This is in addition to when a claim is made when you and your clients
will work with your insurance carrier's claims professionals, who will
provide support and guidance during the claim process.
PML policies and the
risks they entail are often complex and require specialized knowledge.
Are your clients ready for the biggest event of all: a private company
sharknado? If not, that twister could take you along with them.