Financial and Executive Risks
Financial Services Group Overview
The Financial Services Group (FSG) at Aon is a trusted leader in management and executive liability insurance brokerage.
The experience gained from placing a high volume of insurance policies has given us a keen awareness of insurer capabilities, emerging legal and regulatory issues and litigation trends. Our knowledge, experience and data tools support better decision making on pricing, coverage and the resolution of claims.
As the management and executive liability risk landscape continues to evolve with heightened attention on regulatory initiatives, the adoption of artificial intelligence (AI), ESG and cyber threats, Aon can offer tailored consulting and insurance solutions to protect and grow your business.
What We Do
We address the complexities of traditional and emerging risk exposures for public, private, and nonprofit companies through tailored insurance solutions and services designed to protect management’s personal assets and a company’s balance sheet.
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Directors’ and Officers’ Liability
Experience
Aon has been at the forefront of some of the most notable product innovations in the D&O liability insurance market. Our team has deep experience securing coverage for companies going through transformative events, like public transitions, M&A and bankruptcies.
Invaluable Individual Coverage
D&O insurance provides executives with personal liability and financial loss protection from allegations of wrongful acts committed in their capacity as corporate D&Os.
Policy Design
We help companies design and implement a D&O insurance policy that fits their business by identifying companies’ and executives’ risks, considering all viable traditional and alternative risk transfer options and presenting our recommendations. Our broking process is collaborative and incorporates specific marketplace dynamics, client objectives and insurer feedback.
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Fiduciary Liability
Individuals with discretionary authority for the management or administration of an employee benefit plan subject to the Employee Retirement Income Security Act (ERISA) or who exercise authority or control in managing or disposing of its assets are fiduciaries of that plan.
Under ERISA, plan fiduciaries are personally liable for fiduciary failures, meaning their personal assets could potentially be at risk. In a worst-case scenario, even bankruptcy does not offer protection to fiduciaries.
We advise our clients on risk transfer and help secure reliable insurance solutions based on specific needs and preferences.
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Employment Practices Liability
Employment practices liability (EPL) exposures, including those related to wage and hour (W&H) issues constantly change and evolve.
We help companies secure an EPL/W&H insurance program that meets their specific needs and addresses evolving workplace challenges.
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Fidelity and Crime Liability
Crime insurance protects organizations against direct loss from dishonest or fraudulent acts committed by their employees. Tailored coverage can address:
- Employee theft
- Unauthorized funds transfers
- Receipt of counterfeit money
- On-premises or in-transit theft of money and securities
- Computer-related crime (for money and securities only as fidelity/crime policies exclude theft of information)
- Forgery of specified documents
- Social engineering fraud
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Kidnap, Ransom and Extortion
We are a market leader in the design and placement of Kidnap, Ransom and Extortion (KRE) coverage. This coverage typically addresses kidnap, extortion, detention and hijack, but can be extended to include loss of earnings and hostage crises situations.
This coverage typically includes:
- Broad and tailored policy language
- Emergency evacuation for both travelers and expatriates
- Loss of earnings caused by a covered incident
- Threat and missing persons coverage
- Express and virtual kidnap protection
- Expanded definition of ransom
- Assault coverage
- Child abduction protection
We are also able to arrange custom coverage for political repatriation, hostage crises, tiger kidnapping and disappearance and expenses associated with malicious threats.
Product / Service
D&O Risk Analyzer
Explore Our Insights
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Insight Archive
Access and search the complete library of insights from our Financial Services Group.
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Quick Insights
Our Quick Insights address current risk management and insurance developments in a timely and searchable short form format.
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Quarterly Public D&O Pricing Index
Access our latest D&O pricing index to see how premiums have changed over time.
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Legal and Claims Review
Click here for legal news and developments in executive liability and insurance.
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EPL Insights
Our insights into employment practices liability and wage and hour news.
Who We Work With
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Public Companies
D&O is a foundational risk for publicly traded companies and requires carefully tailored insurance to properly protect the business entity and its executives.
Publicly traded companies are often viewed as riskier than private companies, due to the potential exposure to possible shareholder class action claims. Public companies also have heightened financial and public disclosure reporting requirements, increasing potential exposure to shareholder claims.
Companies preparing for initial public offerings, special purpose acquisition companies (SPACs), and de-SPACs have very specific and sensitive risk factors that must be addressed within D&O coverage to ensure that adequate protection is available.
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Private and Nonprofit Organizations
We have a team of brokerage specialists who address the special management liability needs of private and nonprofit organizations.
In the U.S., Aon has brought together an elite panel of insurers based on their ability to deliver distinctive value to private and nonprofit organizations. Our clients can access competitive quotes and Aon-negotiated coverage enhancements.
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Private Equity and Portfolio Companies
We have a team dedicated solely to management and professional liability insurance solutions for private equity firms and their portfolio companies, hedge funds, venture capital, and other alternative investment firms.
Using a structured portfolio approach, we provide access to consistent coverage terms, pricing benefits and optimal claims resolution across portfolio companies.
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Why Work with Aon
Industry Experience
Our brokers and product leaders deliver deep industry knowledge and expertise to clients. This supports and drives our ability to provide tailored and segment-specific advice and solutions.
Claims Resources
Our claims team, which includes non-practicing attorneys, is integrated into our broking practice to ensure optimal coverage terms and financial recovery in the event of a claim. Our claims advocates are highly experienced in coordinating and supporting the claim process from start to resolution.
Data Analytics and Benchmarking
We provide real-time and customized benchmarking insights to support decision-making and help organizations better quantify and analyze risk exposures.
For example, our D&O Risk Analyzer simulates probabilistic exposures and loss scenarios so clients can test insurance options and make data-driven decisions that protect their directors, officers and organizations from D&O risks.
Risk Intelligence and Insights
Harnessing the knowledge of our claims team and product leaders, we provide regular updates and thought leadership on risk, regulatory and coverage developments to help our clients make optimal risk management and risk financing decisions.
Distressed and Restructuring Solutions
In transformative company events, like spins, mergers, and especially bankruptcy filings, D&O coverage is a paramount consideration. Our experienced team can help D&Os understand nuanced risk and insurance issues associated with creditors’ post-filing standing, restructuring solutions, debtor-in-possession financing, and winding down.
Pre- and Post-IPO Solutions
An IPO creates complex financial and operational issues, and when a company’s profile changes from private to public, it is crucial to manage and finance risks appropriately.
Typically, D&O risk is heightened in the first three years after an IPO. There can, for example, be a mistake or misrepresentation in the prospectus, instances of corporate mismanagement or misinformation conveyed during the IPO roadshows. In a worst-case scenario, the resulting claims can jeopardize the continuity of the enterprise.
Most companies are required to procure D&O coverage by their venture capital or private equity investors. Strong governance and ESG policies, practices and disclosures, alongside a suitably robust D&O insurance program, can act as a tool and differentiator to recruit and retain top talent.
