Chubb has introduced ForeFront PortfolioSM, an expansion of its offering for privately held companies. ForeFront was introduced in 1996. The expansion adds new coverages, such as Internet liability and workplace violence expense. ForeFront Portfolio is comprised of eight distinct coverage sections: directors and officers, liability, employment practices liability, fiduciary liability, miscellaneous professional liability, Internet liability, crime, kidnap/ransom and extortion, and workplace violence expense. The eight sections are designed to be flexible so they can be tailored to each company's needs. Companies can choose individual limits for each coverage section, or a combined aggregate limit for their liability coverage sections.
Jane Hodgson, vice president and underwriting manager, says the expansion reflects the need for private companies to keep pace with "today's rapidly changing business environment. Private companies are as likely to encounter threats to their financial well-being as are publicly held companies," she notes. "These threats, including lawsuits, extortion, fraud, embezzlement, workplace violence and other crimes, may come from employees, investors, customers, suppliers, competitors, government agencies, or creditors. Any of these threats could have a fatal impact on a private company's bottom line."
St. Paul enhances physicans and surgeons liability product
St. Paul Companies has introduced an enhanced medical liability product for physicians and surgeons. The product was introduced in Georgia on July 1 on a surplus lines basis. Expansion into other states is possible.
The product combines professional liability with a variety of other coverages, including property and casualty for physicians' office exposures and employment practices liability.
Kevin Rehnberg, president-Global Health Care, says the product was introduced on a surplus lines basis in order to "create the opportunity to continue to enhance and adapt the product to meet the rapidly evolving customer needs in this segment."
AAIS files property coverage for jumbo accounts
The American Association of Insurance Services (AAIS) has filed an expanded version of its Commercial Output Program called "COP-XL" that is intended to allow member insurers to write accounts with huge property values. COP-XL provides very broad commercial property and inland marine coverage on a blanket, open perils basis in a single policy. It is being filed countrywide as a separate line of insurance.
COP-XL differs from the traditional COP in several ways, including:
-- It integrates equipment breakdown coverage into the base property form.
-- It provides a broader range of supplemental inland marine coverages at higher limits.
AAIS will continue to provide the standard COP and plans to revise it this year to include some of the new coverages introduced in COP-XL. Among the new coverages are:
-- Web site interruption, which provides up to $50,000 for lost earnings and extra expenses when use of a Web site hosted off-premises is interrupted because of damage by an insured peril at the host location.
-- Overseas transit and location, which provides up to $100,000 for sales exhibits, sales representative samples, and personal effects of employees and contractors that are lost, damaged or destroyed by an insured peril while they are temporarily outside of the standard coverage territory.
-- Broad crime coverage options, which offer two choices: a "loss sustained" form under which the insurer pays recovery for losses that actually occurred during the policy period and a "discovery" form under which the insurer pays recovery for any loss discovered during the policy period. Both forms offer a choice of six crime coverages: employee fraud and dishonesty; computer and telecommunications fraud; counterfeit currency, money and travelers checks; forged or altered charge cards, credit cards, and debit cards; forged and altered checks; and money and securities.
More information is available by e-mail at bobs@AAISonline.com or by calling (800) 564-AAIS.
Zurich establishes new product and service development unit
Zurich North America has established a new unit, Zurich North America Manufacturing Services, which will focus on developing products and services from an enterprise-wide perspective. Under Manufacturing Services, product and service development will become a distinct function, separate from marketing, sales, delivery and customer support.
Manufacturing Services will capture, analyze and synthesize data to hone Zurich's ability to identify trends, minimize risk and maximize opportunity. The new unit plans to develop and refine existing underwriting and pricing guidelines, rating models and policy forms and deliver them on efficient platforms for business unit managers. Representatives from each business area will work with Manufacturing Services, which will also work closely with the Claims, Risk Engineering, IT and Operations staff. *