Nearly two-thirds of private companies in the U.S. have experienced some event related to management or professional liability in the past five years, according to a new survey.
The Chubb Group of Insurance Companies found that 32 percent of the insurance decision makers at the 469 companies it interviewed said their organizations had experienced workplace crime, while 24 percent cited an event related to employment practices liability, and 22 percent said an event had occurred involving directors' and officers' liability.
The average total cost, including judgments, settlements, fines and legal fees, of an employment practices liability-related event is $63,114, according to Chubb's survey. Despite the risks, the survey found that 37 percent of U.S. companies do not purchase any type of management liability or professional liability insurance.
Respondents were less concerned in 2007 than in 2005 about the potential financial damage caused by lawsuits filed for wrongful termination, discrimination or sexual harassment (23 percent vs. 43 percent), employee or retiree benefit issues (11 percent vs. 18 percent), and directors' and officers' liability issues (5 vs. 9 percent).
