ISO has launched a management liability insurance program designed to address the increasing risks faced by private companies, including sexual harassment. ISO is a Verisk business and a leading provider of forms, rules, and rating information for the property/casualty insurance industry.
The program is designed to address the growth of private firms, which now account for more than 65 percent of all companies in the United States, according to the latest data from the U.S. Census Bureau. The program also addresses the growing risks faced by company directors and officers such as public scandals over the past year that have encouraged victims to report sexual harassment and other workplace infractions.
“Management liability insurance has traditionally been purchased by public companies,” said Deborah Morris, senior vice president of ISO Commercial Lines. “But the leaders of private companies still face many of the same risks, including liability for mergers and acquisitions activity, regulatory investigations, derivative suits, discrimination, and sexual harassment.”
Morris added ISO’s new program for private companies can help insurers serve this market and expand into new lines of business.
The program’s proprietary rating model enables insurers to price worldwide coverage for private companies across several lines of business, including directors and officers, employment practices liability, and fiduciary liability. It also features a higher level of rating granularity, factoring in a range of classes and risk sizes for employment practices liability developed using the latest modeling techniques. There are also options to include coverages for crime as well as kidnap and ransom.
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