EPLI program offered for law firms

NAS Insurance Services of Encino, California, introduced an employers professional liability policy for law firms. It includes punitive damages coverage for allegations and suits relating to discrimination, sexual harassment and wrongful employment conduct.

Limits are available up to $2 million, and all law firm employees are covered. Coinsurance is 5% per claim, and deductibles start at $10,000.

The coverage is available nationwide, with the current exceptions of Maine, Massachusetts, Michigan, New Hampshire, New Jersey, Rhode Island, South Carolina and Puerto Rico.

Coverage is provided by CNA Reinsurance Company, Ltd., and serviced by NAS Insurance Services. Phone: (800) 382-2030.

New consultants E&O program

A new Consultants Errors & Omissions program has been introduced by United States Liability Insurance Group. The program is designed for small to medium-sized firms with up to $5 million in annual billings and is limited to consulting firms specializing in the areas of marketing, management or computers. The product is available in all states except New Mexico and Louisiana with Mt. Vernon Fire Insurance Company or United States Liability Insurance Company, both rated A++.

The product is the first to be written on a "duty to defend" basis with defense costs outside of the limit of liability.

A general liability coverage part will be available shortly whereby an insured can purchase a single policy that provides general liability on an occurrence basis and professional liability on a claims-made basis. Separate limits for each coverage part are provided. A minimum premium of $1,250 applies to the $1 million limit for a marketing or management consultant. A minimum premium of $1,850 applies to a computer consultant's $1 million policy. The general liability coverage part minimum premium is $500 for a $1 million limit.

For more information, contact John G. Donahue, Jr., RPLU, marketing director for USLI in King of Prussia, PA at (800) 523-5545, ext. 281.

D&O risk management tools package introduced

The Zurich-American Insurance Group's Executive Assurance division announced the introduction of a package of D&O risk management tools.

"Recognizing our customers' needs for timely and meaningful risk management resources, we have developed a unique package of reference materials and advisory services for publicly traded companies, those contemplating initial public offerings and private companies," said Ken Sroka, senior vice president of Zurich-American's Executive Assurance division. "One of the most exciting components of the package is the expanded coverage afforded by our new Disclosure Management product."

The Disclosure Management product enables a D&O policyholder to retain the services of one of a panel of public relations firms in anticipation of or in preparation for public disclosure of certain business or financial information. The insurance will provide reimbursement up to $75,000 for the cost of the professional services provided by the panel firm engaged to help manage the disclosure event.

In addition to the Disclosure Management product, Zurich's D&O risk management package will include a quarterly newsletter that provides information on trends affecting D&O liability. Zurich-American's private company D&O clients who purchase Employment Practices Liability (EPL) coverage will receive an employment practices manual, Employment-Labor Law Audit (ELLA).

Created by human resources expert Laurdan Associates of Potomac, Maryland, ELLA is a management tool that helps employers detect hidden problems, develop positive employment relations, implement risk reduction strategies, benchmark best practices and prioritize tasks. ELLA was designed on the premise that employers can't get the right answers if they don't ask the right questions. ELLA first provides employers with the right questions, then gives them the ability to self-audit their responses.

The D&O risk management package of reference materials and advisory services will be available to Zurich-American's Executive Assurance customers.

Liability coverage for PEOs

Professional Employer Organizations can now insure themselves against lawsuits over employee benefits, professional and general liability under a new liability insurance offering from Bouchard Insurance, Inc. Bouchard developed the policies after consulting extensively with executives at several PEOs.

The Bouchard agency specializes in business insurance including workers compensation and liability. The new package is underwritten by Bankers Insurance Group of St. Petersburg, Florida. Bouchard covers prior acts, which may have occurred before the policy was written. Premiums are lower than for comparable insurance products not written specifically to serve the professional employer organization.

Additional information is available from Beverly Hornaday at Bouchard at (800) 966-6481.

Chubb enhances its fiduciary liability policy

The Chubb Group of Insurance Companies has added new features to its fiduciary liability policy for labor management trusts and their trustees.

The fiduciary policy provides coverage for fiduciaries and their labor management plans or trusts for breach of fiduciary duty and wrongful administration. Labor management trusts or plans provide benefits to union employees or employees from multiple employers. Allegations for which there is coverage include denial of benefits, improper disclosures to plan participants, inappropriate selection of service providers, improper advice, administrative error and imprudent investments.

Available as an annual or multi-year policy with limits up to $25 million, the new version also eliminates the deductible; has a built-in recourse provision; allows the insured to elect the extended reporting period; provides automatic runoff coverage when a plan or trust is terminated, merged or consolidated; covers claims filed against spouses' or insureds' estates; deletes the failure to maintain insurance exclusion; and covers fines imposed under Sections 502(i) and (L) of the Employees Retirement Income Security Act of 1974 (ERISA).

As in the past, the policy contains a severability clause, allowing coverage to be determined separately for each insured individual. Chubb, which has the duty to defend the insured, provides legal counsel experienced in ERISA and employee benefit law.

More information about this enhanced policy is available from Donna Lovre, Chubb & Son Inc., Warren, NJ. Phone: (908) 903-2107.

New feature added to travel agents E&O

Berkely Agency, Ltd., has announced the newest program feature of the company's Travel Agents Professional Liability, E&O Insurance Program: ARC Traffic Document Legal Liability Protection. This optional coverage enhances the policy to protect agencies against potential liability arising out of specified losses related to ARC ticket stock.

Other advantages offered by the program include worldwide legal liability protection from travel supplier bankruptcy, bodily injury, property damage and personal injury claims. Virtually all of the travel agencies insured through the company also benefit from first dollar legal defense costs, whereby the policy pays for all legal expenses of covered claims.

Further information is available from the Berkely Agency, Ltd., Garden City, NY. Phone: (800) 645-2424. *

©COPYRIGHT: The Rough Notes Magazine, 1997