USI’s Executive and Professional Risk Solutions (EPS) Practice is dedicated to helping clients stay abreast of important regulatory developments and court decisions that may impact management liability exposures. The USI EPS team has released two recent client advisories addressing the directors and officers (D&O) policy implications from COVID-19 vaccine mandates and board diversity.
As the world continues to face the worst pandemic in a century, there is welcome news in the approval and distribution of a vaccine for COVID-19. This news does not come without challenges to employers who may now be grappling with balancing the health and safety of their workforce (and potentially customers and other visitors) and compliance with federal, state and/or local employment laws. If an employee objects to a workplace vaccination mandate due to disability or religious belief, employers will need to consider a reasonable accommodation. Click here to download the Client Advisory on COVID vaccines.
In a previous advisory, we discussed the continued evolution of social movements from the macro levels of public awareness and legislation to the more focused levels of litigation. We noted recent derivative lawsuits against the directors of companies for the lack of diversity on their boards and management teams. This trend is continuing, highlighted by:
We often say that all roads lead to the boardroom, and that includes all areas of material risk that can land on the doorstep of directors in the form of lawsuits alleging failure to manage those risks. Diversity, equality and inclusion issues are no different, except perhaps being an area of opportunity as well. Studies have shown that more diverse companies tend to outperform financially over the long term.
As directors and officers (D&O) insurance buyers, anticipate underwriting questions on this topic and let your insurance broker help you put your best foot forward in articulating your commitment to diversity and inclusion.
This information has been provided by our national Executive and Professional Risk Solutions Team. Should you have any questions, please contact us.
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