NEXT EXIT

Management Liability Insurance

Private Co. & Not-for-profit Orgs.

Shared or separate limits up to $5M

No purchase requirement

In-house claims expertise

Underwriting expertise/consultation

EMPLOYMENT

PRACTICES

LIABILITYFIDUCIARY

LIABILITY

DIRECTORS

AND OFFICERS

LIABILITY

Map to Management Liability Insurance (MLI)

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Employment Practices Liability

If you have employees,

you have an exposure

92K employment practice

charges in 2016

“#MeTooMovement” – sexual

harassment

Average cost out of court $75K

42% of insureds with less than

100 employees

Average cost settling in court $217K

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EPLI Features

Standard 3rd Party Liability – Natural Person

Employee Privacy Def. – $250K sublimit

Workplace Violence – $250K separate limit

Immigration Claim Def. – $100K sublimit

Choice of counsel

Add Ons FLSA Sublimit – $100K

Additional defense limits

Value Added Selective HR Essentials®

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EPLI Roadside Assistance

SelectiveHREssentials.com

Automatically included

Unlimited access

Harassment/Discrimination

Training

Off-the-shelf handbooks

Controls and procedures

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Exploring New Avenues with EPLI

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Protecting our insured’s

personal assets

Protecting agency E&O

Ripe for opportunity –

undersold

Differentiator

Drive incremental

premium growth

Directors & Officers

EXPRESS LANE

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Directors & Officers Insurance (D&O)

What is it?

Protecting insured persons and the insured entity against claims alleging wrongful acts such as misstatements, misleading statements, breaches of duty, neglect, errors and omissions.

What does that mean?

Protection for individuals who are making decisions on behalf of their business/organization.

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Fast Lane to D&O Success

Not-for-profit Organizations:

63% reported a claim w/in past 10 years1

Helps to attract top talent

Protects financial stability

Transparency can lead to questioning

Private Company:

1 in 4 faced a claim in last 5 years2

96% suffer financial loss*

42% incur productivity loss*

36% face negative moral/cultural impact*

31% suffer negative brand recognition*

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Cautious Conditions

33% believe it is not necessary because they’re private*

33% had no such historical experience*

30% believe it’s not necessary because it’s family run*

No shareholders?

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There are so many more ways a claim

could arise…

D&O Detour

Real Claims Examples:

Counter claim – $300K in defense costs alone

Non-solicitation – $250K in defense and settlement

Experienced D&O claims handling saves time and money:

Avg. loss w/ D&O ~$130K2

Avg. loss w/o D&O ~$408K2

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D&O Features

Non-rescindability

Full severability

Spousal/Domestic Partners

Narrow reporting provision

Choice of counsel

Order of payments

Automatic ERP

Softened Hammer

IVI Carvebacks – incl. Whistleblower

Additional limits for insured persons

Lifetime occ. reporting trigger13

Fiduciary Liability

EXPRESS LANE

Employee

Benefits

Liability

Fiduciary

Liability

Errors & omissions in the

administration of a

benefit plan

Violations of their

responsibility due to

decision making on behalf of

participants of the

benefits plans

X

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What is it?

Protecting individuals and the insured entities against violations of the responsibilities, obligations and duties in managing employee benefit plans.

Fiduciary Features

Voluntary compliance program coverage

HIPAA fines and penalties coverage

502(c) penalties

IRS 4975 violations

PPACA violations

Covers fiduciary and settlor acts

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MLI User Manuals

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Confidential, unpublished property of Selective Insurance Company of America.

Use and distribution limited solely to authorized personnel and appointed agents.

Do not duplicate or distribute.

©2018 Selective Insurance Group, Inc., Branchville, NJ (“Selective”). Products provided by Selective’s insurer subsidiaries; insurers and products available vary by

jurisdiction. These descriptions are summaries and not offers to sell insurance; the actual policies show complete coverage, exclusions and limitations details. Policy

issuance is subject to underwriting approval.

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MLI Supporting Citations:

*https://www.pillsburylaw.com/en/news-and-insights/reality-check-private-companies-need-directors-and-officers.html

1. https://www.towerswatson.com/en-US/Insights/IC-Types/Survey-Research-Results/2013/03/Directors-and-Officers-Liability-2012-Survey-of-Insurance-Purchasing-

Trends

2. http://plusweb.org/Portals/0/Chapter%20Material/NC-April17.pdf