How COVID-19 has changed your workers’ compensation liabilities
We're all aware of the dangers of workers contracting the coronavirus. What then is the fallout for employers' role across the country in keeping staff COVID-19 safe?
Your business is undoubtedly familiar with the nuts and bolts of your disaster recovery plan due to the current pandemic. It’s a much-changed landscape for risk. So how can you use your insights to better plan for the implications of possible management liabilities in the current climate?
Management liability exposures include, but are not limited to:
Not managing risks appropriately will expose your company’s directors and officers to claims against their decision-making and disaster planning. Added to this is the increase in reporting obligations about how your business maintains its resources to deal with the unfolding crisis. This will also include the strategic planning on how the pandemic will affect financial performance.
So here’s how to build on your recent experience with supply-chain disruption, fickle or reduced consumer demand and public health orders impacting upon your workplace and its operations.
As a manager, owner, director, or officer of a company, here are some of the ongoing challenges you’ll need to consider as part of usual operations:
You may believe your contingency plans and management responses are adequate, but your staff, customers, investors, shareholders, and even regulators may question the adequacy of your leaders’ plans and responses. Public companies are subject to continuous disclosure laws and you’re compelled to comply with them where necessary or face legal risks regarding financial and non-financial issues.
This checklist of considerations may help:
That’s where directors’ and officers’ (D&O) insurance policies (or management liability policies for private companies) can help protect against the risks of doing business. This offers cover for claims brought against a company’s directors or officers for wrongful acts committed or allegedly committed in the course of their duties. It’s yet to be determined if insurance policies will respond to COVID-related events.
Typically, D&O policies cover wrongful acts committed – or allegedly committed – in their capacity as corporate officers. They are designed to protect company directors’ and officers’ personal assets.
However, this policy generally won’t cover:
Management liability policies are broken down into several sections that cover off a range of risk exposures involving the directors of private companies. Generally, a management liability policy covers risk relating to statutory liabilities, workplace health and safety and employment practices.
The pandemic also has insurance implications for business interruption and continuity, travel insurance, among other areas.
Protect your business with these extra measures:
We can also keep you up to date on government and regulators’ changes of reporting requirements and procedures. It’s time to review your insurance cover and update us about any potential claims.
Article supplied by OneAffiniti
Photo by Christina on Unsplash