Lisa McGee Quotations

Many private companies are planning activities that may increase their exposure to management liability risks.

Moreover, the concern for these risks expressed by the executives surveyed does not always translate into an insurance purchase.

As privately held companies continue to escalate their activity in areas that were once considered the domain of large publicly owned companies, they have increased their exposure to potentially costly liability-related lawsuits, as well as to crime events such as workplace fraud and extortion. In an area such as directors and officers liability, the stakes can be especially high and financially devastating.

For example, 43 percent of the executives said they are concerned about a possible lawsuit over termination, discrimination or sexual harassment in the year ahead, yet only 33 percent of the companies purchase employment practices liability insurance. As a result of these findings, we continue to remain concerned that private companies may not be financially prepared to manage the consequences of a liability lawsuit or crime event.