Executive and Financial Risk Insurance

Understand your exposures, reduce your risks, and stay covered.

Know Your Exposures

Changing litigation and regulatory landscapes bring new requirements for corporate risk management. Lockton is on top of it. Our team of specialists helps you understand your exposures, reduce your risks and keep you covered.

Our business risk experts identify the issues that may affect your company’s financial performance, brand and culture. Then we come up with solutions. As your partner, we:

  • Educate your executive and risk management team on exposures and risk-transfer and -mitigation solutions.
  • Differentiate your company with the underwriting community in order to obtain optimal risk transfer options.
  • Provide ongoing communication of legal and regulatory changes that may affect your company.

Executive Risk


Directors & Officers Liability

Companies and their directors and officers face increasingly strict regulations and a hostile litigation environment. A decision that adversely affects shareholders, employees, customers or creditors, or that runs afoul of a regulatory issue, can lead to a lawsuit or regulatory investigation that may leave individuals personally liable.

D&O insurance is intended to provide cover for directors, officers and other insureds—including the company itself in certain circumstances—for liability that arises out of their leadership roles.

While D&O coverage is subject to some exclusions and other coverage terms, the policy typically pays for defense costs, settlements and judgments, usually in excess of a deductible for those claims.

270 securities class actions were filed in 2016 compared to 188 in 2015
Federal merger objection lawsuits more than quadrupled in 2016

270 securities class actions were filed in 2016 compared to 188 in 2015

1 - https://www.cornerstone.com/Publications/Reports/Securities-Class-Action-Filings-2016-YIR 
2 - http://www.advisenltd.com/wp-content/uploads/2016/01/quarterly-DO-wrap-up-slides-2017-01-25.pdf
3 -           

The Lockton Process

Lockton Process

Employment Practices Liability

EPLI policies provide coverage for companies and their employees, inclusive of directors, officers and senior management, for claims brought by past, present or future employees alleging wrongful employment acts and decisions, which include sexual or other workplace harassment, including quid pro quo and hostile work environment.

Many, but not all, EPLI policies also extend coverage to claims brought by third parties, such as clients, customers or vendors of a company, who allege discrimination or sexual harassment.


Source: EEOC’s Select Task Force on the Study of Harassment in the Workplace, June 2016.

Fiduciary Liability

When you offer retirement and other benefits plans, you face the risk of litigation from employees and others stemming from the management and administration of those plans, even if you use a third-party administrator. Our experts can help protect you.

A fiduciary liability insurance policy covers lawsuits alleging breach of fiduciary duty or similar claims with regard to retirement and other benefit plans.

A few examples of these retirement and benefits plans include the management of the ERISA bond, 401(k) plan, and Health & Wellness plans.


Financial Institutions Bond

What is a bond?

If an employee steals money, securities or property from you or a client, a bond policy reimburses you.

A bond policy can also provide coverage for loss resulting from illegal acts of third parties, such as computer fraud, wire transfer fraud, robbery/burglary and social engineering.


A Lockton Advantage

At Lockton, we don't meet expectations. We exceed them. We'll take the extra steps to confirm you have everything you need when you need it. For your bond, we perform regular checks on it's in compliance with regulators. We partner with the best in the industry to provide dependable service offering the latest and greatest coverage enhancements.

Common Coverages

  • Employee Dishonesty
  • On-Premises
  • Forgery or Alteration
  • ERISA Bond
  • Plastic Card
  • Consumer Legislation
  • Transit

Professional Liability

Lockton is one of the leading advisors on professional liability insurance. We have unparalleled knowledge of the coverage available under professional liability insurance policies, and strong relationships with a wide array of top professional liability insurers.

We make it our business to understand the specific risks and challenges inherent in your professional practice.

Examples of Professional Liability:

  • Lending Liability
  • Managed Care Errors & Omissions
  • Investment Advisor's Errors & Omissions
  • Financial Advisors
  • Management Consultants
  • Insurance Company Errors & Omissions