Companies of all sizes are vulnerable to potentially devastating management, employment and fiduciary liability lawsuits. Even claims filed without merit can result in defense expenses that are financially draining. Private Accord, a new packaged liability policy available through Business Risk Partners Inc. (BRP) and QBE the Americas, offers protection for small to mid-sized private, for-profit companies.
Private Accord includes directors and officers (D&O), employment practices liability insurance (EPLI) and fiduciary liability coverage all in one tailored package. The flexible approach to coverage selection and limit options helps meet the specific needs of each insured. The policy form allows for separate limits, or shared limits for a significantly reduced cost.
Coverage is available for private, for-profit commercial companies with assets up to $200 million and an employee count up to 2,000. It is now offered on an admitted basis in 23 states – Arizona, Alabama, Connecticut, Delaware, George, Idaho, Iowa, Kentucky, Michigan, Missouri, Mississippi, North Dakota, New Hampshire, New Jersey, Ohio, Pennsylvania, Rhode Island, South Dakota, Tennessee, Texas, Utah, West Virginia, Wisconsin – with limit capacity of up to $5 million. Filings are currently underway in all additional states nationwide. QBE Insurance companies are rated “A” (Excellent) by A.M. Best and “A+” by Standard & Poor’s.
Today, D&O, EPLI and fiduciary liability don’t look the same as they did even just six months ago. The coverages and enhancements are ever changing, making it difficult for policyholders to keep up with the best products available.
Some coverage enhancements that are available in Private Accord (subject to underwriting guidelines and approval) are as follows:
— Non-rescindable A, B and C side D&O coverage
— Wage and Hour $100,000 defense sublimit
— Side A pollution derivative suit coverage
— Partnership liability for LP’s and GP’s
— 25% credit on retentions when no liability is found
— Derivative Demand Investigative Costs sublimit
— Tenant discrimination defense coverage (EPLI for property managers)
— $0(nil) retentions on D&O
–100% defense allocation
“Especially in tough economic times, with layoffs and monetary cut backs, smaller companies are increasingly exposed to lawsuits,” explained Dave Sessions, managing director, Business Risk Partners Inc. “Private Accord offers comprehensive protection to help employers reduce the risk of costly litigation, and focus on what they do best, running their company.”
Sharon Shaw of American Claims Management, a claims and litigation manager, commented on the benefit of having a packaged policy for when the claims climate heats up. “Claims tend to increase just as revenues get pinched and companies consider scaling back insurance protection,” she explained. “An economically efficient policy that covers all liability needs in one form eliminates that worry about cutting costs at a critical time – when a company and its officers are most vulnerable.”
Source: Business Risk Partners,
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