Many companies never face the hard truth about potential lawsuits until it’s too late. Some are not fully ready to handle potential legal entanglements, while others are completely unprepared. In fact, a reputable research firm recently reported that three-quarters of U.S. businesses are underinsured by at least 40%. Small businesses are particularly vulnerable, with two-thirds carrying no insurance at all, according to the Insurance Information Institute. Yet, only one lawsuit can generate serious financial loss, especially for leadership. Companies of all sizes—in all industries—should be protected. One of the best ways to do this is with sound liability management services from eMaxx, one of the most respected, client-oriented providers in the field.
To better understand the significance of this protection, it’s important to ask a fundamental question: what is asset liability management? At its most basic level, this process oversees the use of cash flow to decrease a company’s risk if a liability is not paid on time.
However, a company’s risks run much deeper, so maximizing coverage is essential. In short, management liability coverage safeguards both assets and reputations. Policies protect officers, managers and board members from everything from mismanagement to work discrimination charges.
For most companies, asset and liability management policies commonly cover several key areas. For example, director and officer coverage applies to accusations of misjudgment, managerial errors or improper conduct. This could be as simple as a CFO projecting growth when in fact, the growth never happens and investors sue the company for misrepresentation. Another example is employment practices, as in the case of harassment or personnel-related issues. Yet another area is fiduciary in the event of claims against mismanagement of a benefit plan. This might involve employees claiming that they were not informed of a retirement plan option. Still another area involves commercial crime involving employees or third parties. This could affect items ranging from cash to equipment and vehicles.
For many businesses, these risks are typically handled with single, standalone policies. However, liability risk management policies in a comprehensive package makes cost-effective sense for small businesses. eMaxx offers clients the opportunity to pick and choose the package that best meets their needs. By creating a customized program, the insured firms realize fewer claims, which ultimately translates to lower premiums.
One of the benefits of working with eMaxx’s liability management services is that clients enjoy a holistic view of risk management. From consultation with legal experts to technology professionals who can implement programs and seasoned insurance brokers who are well versed in commercial captive offerings, eMaxx has the solutions. Contact eMaxx today to learn more about safeguarding your entire business.