LIU, the specialty lines division of Liberty Mutual Group, has filed its Private Advantage Company Combo policy for directors and officers as an admitted product in 47 states.
LIU originally launched this product in 2008 to fill a coverage gap in the industry and help protect executives from litigation stemming from the alleged improper release of carbon dioxide and other greenhouse gases.
Two years later, LIU says it is still the only carrier to offer a separate and dedicated limit for pollution defense cost coverage for directors and officers of private companies.
LIU’s Private Advantage Company Combo offers broad private company management coverage for D&O liability, employment practices liability, fiduciary liability, pollution defense and standard ISO crime fidelity. As a modular policy, it gives brokers the opportunity to choose which of the five coverage parts – each includes a broad definition of wrongful act, claim, and insured person – would offer the best protection for their clients.
LIU said its Special Casualty division filed the policy as an admitted product in response to increased demand from brokers serving middle market clients to make it more easily accessible.
According to Trevor Howard, senior vice president of LIU’s U.S. management liability operations, as public demand increases for companies to limit their CO2 output, private companies will soon face the same level of scrutiny that public companies are now under regarding their CO2 footprints.
“The majority of private companies do not have the deep pockets necessary to defend themselves against global warming-related litigation or other high-payout cases such as employment practices liability,” said Howard. “We developed this product two years ago to give brokers a policy that protects their clients against the risks facing D&Os – something that wasn’t available on the market at the time. Now that the policy is available on an admitted basis, we hope to help more brokers protect their private company clients against that one unforeseen claim that could wipe out the company’s resources.”
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