Thirty-seven percent of U.S companies do not purchase any type of management liability/professional liability insurance despite high exposure to liability risks, according to the latest Chubb Private Company Risk Survey.

The majority of survey participants do not purchase employment practices liability (63 percent), crime (66 percent), D&O liability (63 percent) and cyber liability (91 percent) insurance. Only 23 percent of participants were concerned about lawsuits filed for wrongful termination, discrimination or sexual harassment, compared to 43 percent in 2005.

However, two-thirds of U.S private companies have experienced an event related to management/professional liability in the past five years, including workplace crime (32 percent), employment practices liability (24 percent) and D&O liability (22 percent). In 2008, 31 percent of companies expect to experience a crime-related event, 26 percent a D&O liability incident and 19 percent an employment practices liability incident.

Private company executives stated their firms likely will increase product offerings (47 percent), reduce workforce size (28 percent), outsource functions or operations (25 percent), reduce or eliminate some employee benefits (20 percent), or make a major acquisition (19 percent) this year, which could increase exposures to liability lawsuits.

For more information, visit www.chubb.com/.

Special Reports /

Private companies exposed to liability risks with little protection: Chubb survey

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