Special Section sponsored by TMPAA

Fox Point Programs

Key programs administered: registered investment advisors E&O; universal E&O (also referred to as miscellaneous E&O); professional liability; not-for-profit D&O, specializing in homeowners/condo associations

Fox Point Programs is a Delaware-based insurance agency that specializes in management liability products. The entity is licensed to do business in all 50 states and has the authority to handle surplus lines transactions in most jurisdictions. All the insurance carriers that Fox Point represents are rated “A” or better by A.M. Best.

Fox Point was established in July 2004, to fill a perceived need in the marketplace. “Many small businesses do not recognize the potential liability exposures they face by offering professional services for a fee,” says Carl Wilson, manager of the agency. “We have found that most are not interested in the coverage unless it is required as a prerequisite for getting a license. Our own insurance industry even trivializes the product a bit, referring to it as ‘miscellaneous’ errors & omissions. At Fox Point, we recognize that professional liability insurance is an integral part of any business’s overall risk mitigation strategy. We market the product as ‘universal’ E&O in order to emphasize the importance of the coverage. Through our carrier appointments, we are able to offer professional liability insurance to virtually any business segment.”

“It is our goal to simplify the purchase of professional liability coverage as much as possible,” says Jeremy Theobald, Fox Point E&O underwriter. “To that end, we have created easy-to-complete, self-rating applications. Risks fitting the eligibility criteria will know in advance what their premiums will be. Self-raters are available for several different business classes, including real estate agents, title agents, interior designers, and private investigators.”

According to Carl Wilson, the agency can provide E&O insurance on a group basis as well. “Having an aggregated block of homogeneous business gives us more flexibility in tailoring policy terms, liability limits, and ancillary coverages to fit their unique needs. Trade associations, program administrators, or specialized insurance carriers can benefit from this offering.”

The agency serves as the nationwide administrator of an E&O program designed specifically to address the unique liability exposures facing registered investment advisors. “Our program targets individual advisors generating less than $500,000 in commission/fee revenues annually,” adds Al Holden, the product’s underwriter. “Premiums start at $1,421. We offer limits of up to $2 million per claim and a $2 million aggregate. Several different retention options are available. Coverage is written on a claims-made basis. Eligible risks are not involved in REITS, limited partnerships, or hedge funds. Other restrictions apply.”

As an ancillary benefit, Fox Point includes up to $25,000 in identity theft coverage on all of its E&O product offerings. “Our team at Fox Point is very sensitive to the potentially devastating financial impact that identity theft can have on our policyholders,” states Holden. “For this reason, we have decided to include the coverage at no cost to our insureds.” Certain restrictions apply.

The agency also administers a book of not-for-profit directors & officers (NFP D&O) insurance. “We see the addition of NFP D&O to Fox Point’s product portfolio as a logical extension of our charter to provide insurance options to underserved market niches,” states John Tobelmann, NFP underwriter. “Our focus is on smaller, specialized entities that are either unaware of the risk exposure or have a difficult time securing insurance through traditional sources. Fox Point has recently been successful in placing D&O coverage for homeowners/condo associations, political action committees, and advocacy groups.”

Anyone interested in learning more about our portfolio of products can access Fox Point’s Web site (www.foxpointprg.com) where agents can read about their coverage offerings, download applications and other pertinent information, and make quick-quote submissions online. Inquiries can also be directed to the company via telephone (800-499-7242) or through e-mail at: information@foxpointprg.com. *