Hot Programs and Products

March 21, 2011

Here’s what some insurers and brokers have been up to recently, inventing and tweaking key programs and coverages.

Liability: Professional, E&O, D&O, EPLI

CNA launched Epack Extra, an enhanced version of its modular Epack product that includes directors and officers, employment practices liability, fiduciary, miscellaneous professional liability and media liability.

For the medical technology industry, Travelers released MedFirst, a combination of three liability coverages: products/completed operations liability, errors and omissions and information security liability.

The federal government’s crackdown on fraud and errors in Medicare and Medicaid is raising liability issues for firms that manage claims and billing for these programs. IronHealth created two products: the Medicare Reporting & Secondary Payer Act Liability policy and the Government Billing E&O policy.

For banks under regulatory oversight, Business Risk Partners is offering professional and management liability protections for distressed community banks, including hard-to-find Regulatory Defense Cover for directors and officers as a result of regulatory proceedings and investigations.

Chartis launched Executive Edge, which provides D&O coverage for public companies and the personal exposures of their executives when insured companies fail to provide indemnification to their executives. It is the first primary D&O and company liability policy to integrate this executive payment feature for any reason, not just company insolvency.

WrightUSA has a professional liability product tailored to federal government employees with international exposures. The World Wide Plan product will respond to any allegation of a covered wrongful act, even if the suit is brought outside of the U.S.

Arch Insurance Group unveiled Arch Canopy Policy for nonprofit organizations. The coverage components are: directors, officers and organization liability; employment practices liability; fiduciary liability; crime and kidnap ransom and extortion.

Cyber and Social Media Risk

The Hartford Steam Boiler Inspection and Insurance Co. expanded its data breach coverage for business owners to help them respond to the loss or theft of the personal information they keep on customers and employees, to include legal defense and liability costs.

Medical professional liability insurer Medical Protective developed MedPro CyberShield, a cyber liability coverage product at no additional charge to policyholders.

A new endorsement from Monitor Liability Managers helps small to medium-sized businesses protect themselves against employment liability exposures arising from employee use of Twitter, Facebook and other social media. The endorsement includes: social media and workplace bullying definition; $100,000 sublimit for defamation, libel and invasion of privacy against a third party resulting from the use of social media; and expanded definition of a wrongful act to include workplace bullying.

Chartis introduced Employment Edge addressing the employment practices liabilities arising from employee use of the Internet and social media. Coverage has been expanded to include workplace bullying and violations of the Genetic Information Non-Discrimination Act. Employment Edge can respond even when such activities occur outside of the office.

Pet Projects

he Hartford Financial Services Group has a program offering auto and home insurance to owners of all American Kennel Club registered dogs. Owners with breeds historically ineligible for coverage may be eligible if they meet specific conditions demonstrating obedience and responsible dog ownership, including passing the AKC Canine Good Citizen test.

Several insurers including Progressive now offer pet injury protection with their auto policies. If a dog or cat is hurt in a vehicle accident, the coverage will pay vet bills up to a certain amount.

NIP Programs has a program called PetPro for veterinarians, animal hospitals, shelters, pet hotels and doggie day camps, pet rescue and adoption organizations, dog walkers, pet trainers, groomers, pet boutiques and others Ð from one-person operations to multi-state businesses.

Program administrator Brownyard Group has added animal mortality coverage to its PCOpro national pest control program. The coverage is for pest control operators with canines that are specifically trained to detect insects or vermin with a limit of up to $15,000 per dog.

AGE Insurance created the Asset Guard Endorsement, underwritten by Philadelphia Insurance Co., which protects seniors if they should have a liability claim against them while living in long term care or assisted living facilities. The policy is available with pet liability coverage. Many seniors get a pet as a companion while living in these centers and some facilities even encourage pets for therapy. However, a dog owner is strictly liable for a dog bite and subsequent injury in 36 states. The coverage will pay for the defense and indemnity of a liability claim.

Some of man’s best friends are in the doghouse. Because dog bite claims are costing millions of dollars year, some insurers are excluding dogs from homeowners policies. Also, a national insurance advisory organization used by 600 carriers — the American Association of Insurance Services– is filing three endorsements to allow insurers to exclude personal and umbrella liability coverage for injury or damage arising from dogs. Agents with home insurers willing to accept Fido could have a leg up on the competition.

Green & Renewable Energy Risks

ACE USA formed a specialized underwriting unit for the renewable energy sector to offer “one stop shopping” with a coordinated package of property/casualty products tailored to the needs of renewable energy companies.

Fireman’s Fund Insurance Co. is offering its policyholders with Energy Star buildings a five percent discount. It also expanded its commercial green insurance appetite to include alternative energy equipment.

For clients who are installing solar panels and energy systems and operating solar farms, Travelers added SolarPak coverage to its EnergyPak series of insurance products and services offerings.

Chartis introduced an Auto Physical Damage Alternative Fuel Incentive Deductible to assist businesses in their efforts to be environmentally responsible. It reimburses them for their auto physical damage deductible, or waives it, up to a maximum of $1,000, if a covered gasoline-powered vehicle is deemed a total loss and is replaced with a “green” automobile.

Lexington Insurance Co. introduced CarbonCover Registry, a professional liability coverage for carbon registries that issue and track carbon offset credits; train, accredit and oversee third party verifiers; and establish standards for the development, quantification and verification of greenhouse gas emissions reduction projects. Lexington also introduced CarbonCover Design & Confirm, which broadens its architects’ and engineers’ professional liability policy to cover claims arising from greenhouse gas consulting and emission reduction verification services.

Environmental

Chartis introduced NextGen Protection, a suite of environmental insurance products designed for several industries that face potential exposure to environmental liability from facilities they own or operate and products and services they produce. The first two products are for healthcare facilities and higher education institutions.

Great American Insurance Group‘s Environmental Division has expanded its product line to include a project-specific contracting services environmental liability insurance product. This product is for contractors or project owners for pollution exposures during the course of a construction project, including completed operation exposures.

Philadelphia Insurance Cos. added contractor environmental and professional coverage for construction managers, general contractors, trade and specialty contractors, environmental professionals, environmental labs and other firms with both environmental and professional exposures.

Rockhill’s National Environmental Coverage Corp. environmental unit released a new lead safe contractors professional liability program in response to new rules from the Environmental Protection Agency that require contractors performing work on homes, schools, or child-care facilities to comply with new lead paint safety regulations.

Product Recall

Normally sold as a stand-alone professional liability policy, the new manufacturers’ errors and omissions endorsement from Liberty International Underwriters marks the first time this coverage can be included in a product recall policy. The endorsement covers situations where a third party suffers financial loss due to the insured’s manufacturing error. The policy helps eliminate coverage gaps between separate product recall and ME&O policies.

Lexington Insurance Co. released LexNanoShield for manufacturers of nanoparticles or nanomaterials, or firms using them in their processes. It includes protection for general liability, product liability, product pollution legal liability and product recall liability exposures. Also, first party product recall coverage is available to reimburse expenses incurred if a product containing nanoparticles or nanomaterials is recalled from the market for safety reasons.

Colemont Insurance Brokers has a program to address the product recall, withdrawal expense, and recall liability exposures of smaller and mid-sized manufacturers of non-food products with replacement value of less than $100, including items like small appliances and office supplies.

Topics Carriers Legislation Auto Pollution Professional Liability Contractors Manufacturing Directors Officers NonProfits

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Insurance Journal West March 21, 2011
March 21, 2011
Insurance Journal West Magazine

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