You Can’t Afford to Make this Mistake any Longer
You and your executive team are constantly engaged in various strategic initiatives, such as pursuing growth opportunities, enhancing efficiency through technology upgrades, and implementing cost-saving programs. Time is a precious and limited resource in this fast-paced environment.
However, when the need to renew insurance arises, it can be a dreaded interruption. You want to expedite the process, determine who truly needs to be involved, and possibly handle it through a brief virtual meeting to move on quickly.
Many commercial brokers offer streamlined, template-based processes to accommodate your desire for efficiency, as they earn a percentage of your premiums and prioritize volume.
Unfortunately, the business landscape has evolved significantly, introducing numerous variables that can have a detrimental impact on a company when relying on one-size-fits-all risk management solutions.
For brevity, let’s focus on a specific type of coverage, directors and officers (D&O). Several factors have increased the risk associated with D&O liability:
- Heightened Scrutiny of Corporate Leadership
- Increased Insolvency Risks
- Market Volatility
- Cyber Interruptions and Reputational Damage
- Elevated Litigation Risks
- SPAC Scrutiny
In addition to these challenges, complications can arise regarding the approval of claims and appropriate benefits distribution. Recent events, such as the FTX crypto fraud case involving Sam Bankman-Fried, have highlighted conflicts in determining benefits for responsible parties and achieving clear resolutions.
FTX Drama Extends to Bitter Fight Over Limited Insurance Pie
This emphasizes that having a D&O policy for the executive leadership team doesn’t necessarily ensure that coverage limits are suitable for potential liabilities. Allocating benefits can also be a complex issue.
Before dismissing these concerns as isolated incidents, remember the historical example of Enron, where D&O insurers struggled to determine how to distribute a limited insurance fund among directors seeking coverage for their defense costs.
To address these issues:
- Avoid relying on volume-driven insurance brokers who offer generic solutions.
- Reach out to Bryson for a comprehensive, no-cost assessment at info@brysonfinancial.com or 562.435.4267.
Bryson, a leading national broker, specializes in delivering unparalleled white-glove concierge service. By harnessing the knowledge of our dedicated teams and subject matter experts, we offer creative, customized solutions with agility that larger brokers can’t match. With our strategic approach and focus on cost reduction, Bryson turns insurance into a competitive advantage.