LinkedIn Facebook Twitter Email

Employee stock ownership plans (ESOP): what you should know

Employee stock ownership plans (ESOP): what you should know

In Liberty Mutual Surety’s employee stock ownership plan (ESOP) series, surety experts explore all components of employee stock ownership plans, including the advantages and disadvantages, legal best practices, claims examples, and more.

Are ESOPs a suitable form of ownership in construction? Understand the risks.

Proper succession planning has long been of paramount importance to both construction company owners and their sureties. With the aging ownership population in this industry, solving for this risk while keeping in mind the best interests of all parties is an ever-increasing challenge. The lack of proper succession planning and the improper execution of succession plans have historically proven to be risk factors that can lead to contractor difficulties and, often, to failure. If executed correctly, however, ESOPs can be a viable vehicle to facilitate ownership transfer and perpetuate a company. 

Download our white paper to learn more about the characteristics of this ownership structure. 

July 2023 construction industry summit

Watch this recent event to hear from members of our Construction Consulting Services and Contract Underwriting teams as they discuss ESOP advantages and disadvantages, accounting and legal considerations, and underwriting best practices.

Employee stock ownership plans podcast

In this episode, members of the Liberty Mutual Surety in-house Claims team share specific details about how they navigated a previous ESOP claim and the creative solutions they employed to result in success for the account.


This website is general in nature, and is provided as a courtesy to you. Information is accurate to the best of Liberty Mutual’s knowledge, but companies and individuals should not rely on it to prevent and mitigate all risks as an explanation of coverage or benefits under an insurance policy. Consult your professional advisor regarding your particular facts and circumstance. By citing external authorities or linking to other websites, Liberty Mutual is not endorsing them.