Management Liability Insurance · Private Co. & Not-for-profit Orgs. Shared or separate limits up...
Transcript of Management Liability Insurance · Private Co. & Not-for-profit Orgs. Shared or separate limits up...
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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