Skip to main content

The Impact of Specialty Risk Consultations – A Kapnick Case Study

The following is a case study about how Kapnick’s Specialty Risk experts provided in-depth consultation of policies to ensure a real Kapnick client fully understood how their management liability coverage would respond in various claim scenarios to mitigate risk and add value to their business.

A large manufacturing client followed their advisors’ recommendations and had a suite of management liability policies including Directors & Officers (D&O), Employment Practices Liability, Fiduciary Liability, Cyber and more, but their executive leadership team was not comfortable with all of the industry-specific terms in the policies, nor did they fully understand the nuances of how they would be covered in the event of a claim.

Kapnick Specialty Risk experts scheduled an in-depth, internal coverage review with the company’s legal counsel. The information session included a language review in order to ensure everyone understood how various policies worked independently, and together, and which would respond to various claim scenarios. At the end of the session, leadership understood more thoroughly what their premium dollars were going to, how their policies mitigated relevant risks, and why their coverage added value to their business.

More than a third of US businesses do not purchase any management or professional liability insurance, despite two-thirds of US private companies having experienced some type of event related to management or professional liability in the past five years.

Average reported losses for private companies:

  • D&O – $399,394
  • Employment Practices Liability – $102,915
  • Commercial Crime – $297,009