Navigators Launches New Management Liability Policy for Private Companies

January 6, 2009

In response to the sharply increasing risk of employee-related litigation faced by privately held corporations and their directors, The Navigators Group Inc. introduced a new product called SmartPolicy, available from Navigators Pro, a division of the company's principal underwriting agency subsidiary, Navigators Management Co.

SmartPolicy responds to specific needs of small to medium-sized privately held corporations. Liability coverage offered under SmartPolicy includes features beyond that of typical directors and officers liability, fiduciary liability, or employment practices liability policies. Limits of liability up to $25 million are available, subject to Navigators' underwriting requirements. Coverage is underwritten by Navigators Insurance Co. and Navigators Specialty Insurance Co., which are both rated "A" (Excellent) by A.M. Best, and Navigators Syndicate 1221 at Lloyd's of London. Lloyd's is rated "A" (Excellent) by A.M. Best and "A+" (Strong) by Standard & Poor's.

"Many privately held corporations are purchasing management liability products for the first time as part of their enterprise risk management program," says Christopher Duca, president of Navigators Pro. "The current economic climate exacerbates corporate exposure to expanded employee and shareholder rights."

The U.S. Supreme Court's recent decision in CBOCS West v. Humphries permits employees to bring retaliation suits against employers under Section 1981 of the Civil Rights Acts of 1866 and 1991, which will likely lead to increased litigation from both employees and shareholders, according to Navigators Group.

Source: The Navigators Group,
www.navg.com