Private Company Management Liability

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The Betterley Report: Private Company Management Liability Insurance Market Survey 2018

2018 Report Highlights

28

insurers analyzed

59

pages of charts

Market Information for Each Insurer Based on 3 Categories:

  • Targeted Insureds by Size
  • Targeted Insureds by Industry
  • Prohibited Insureds
Updates inside the full report include:
  • 76 pages with 11 different kinds of charts comparing 28 of the most prominent insurers writing private company management liability insurance
  • An examination of how cyber coverage and cyber exclusions are finding their way into policies
  • A look at how deceptive funds transfer fraud (social engineering) coverage is finding its way into management liability insurance coverage
  • A breakdown of which insurers are offering defense-only wage and hour coverage, and which ones are offering defense and settlement wage and hour coverage
  • A review of rates and growth rates
  • New analysis of Insurance Services Office, Inc./Verisk policy wording and risk management services
  • A look at how directors and officers (D&O) entity loss experience is affecting rates
  • A survey of future rate expectations from participating insurers
  • An estimate of management liability insurance written premium
  • A breakdown of the differences in coverage lines offered from insurer to insurer
  • Trends in the offering of duty-to-defend versus indemnify forms
  • Loss prevention and mitigation insights from employment practices liability (EPL) expert Don Phin

Why The Betterley Report?

Agents and Brokers—Sell more and grow revenue by pinpointing errors in competitors' policies/proposals.
Risk Managers and Insurance Buyers—Identify, eliminate, or avoid coverage gaps with coverage comparison charts.
Underwriters—Research competitors with quick policy comparisons.
Attorneys—Keep up with year-to-year trends in policy form development.
Consultants—Identify markets and match them up to your clients' needs.

Management liability concerns extend far beyond the realm of publicly traded companies. Private companies can face equally challenging D&O and EPL exposures. For some private companies without the financial resources of large public companies, adequate insurance coverage becomes all the more critical.

Imagine that you or your privately owned client is faced with troubling allegations of wrongdoing against not only the company itself, but also the individual leaders of the organization. Suddenly, you or your client is faced with rising legal costs and the threat of a potentially significant settlement that could set the company back for years financially.

  • "What are the best insurance products available to protect against this circumstance?"
  • "How can financial losses be minimized?"
  • "How could my company (or my client) have been better prepared for this liability?"

Depending on whether you are the risk manager, the agent or broker, the consultant, or any other role, these are likely the questions you are asking yourself. In today's litigious environment, in which private companies can face many of the same exposures that their public company counterparts are confronted with, adequate insurance and risk management is a must.

The "Private Company Management Liability Insurance Market Survey" edition of The Betterley Report compares and contrasts the options available in the insurance marketplace to address scenarios like this and sheds light on the specific knowledge that can help any risk management and insurance professional better address private company management liability exposures.

Following a general overview of the state of the private company management liability insurance market, the report dives into the trademark feature offered in each edition of The Betterley Report: Incomparably detailed charts comparing the leading private company management liability insurers. These comparison charts allow readers to see how each of the insurers stacks up with the others in terms of:

11 types of insurer comparison charts available in full report:

These comparison charts allow readers to see how each of the insurers stacks up with the others in terms of:

  • Contact and Product Information
  • Lines of Coverage Available
  • Market Information
  • Limits Options Available and Cost
  • Limits, Deductibles, Coinsurance, and Commissions by Coverage
  • D&O Limits Usually Purchased by Insurer’s Insured
  • Policy Type and Definition of Insured
  • Claims Reporting, ERP, Selection of Counsel, Consent To Settle
  • Preset Allocation of Defense Costs
  • Exclusions
  • Risk Management Services and Charges

Sample Market Information from Full Report

Below is a small sample of the information that is available for each of the insurers via the 11 different types of charts included in the full report.

Market Information
Insurer Target Markets Size of Company Target Markets Industry Prohibited Insureds Prohibited States Is Product Available to Insureds Located Outside of the U.S.?
Berkshire Hathaway Specialty Private companies with revenues from $10 million to $2+ billion All except prohibited classes Gun manufacturers; government entities; third party administrators (TPA); cryptocurrency exchanges Available in all states, either on admitted or surplus paper as applicable Yes, where permissible by law
Limits Options Available and Cost
Insurer Insurer Offers Separate Annual Aggregate for Each Coverage? Insurer Offers Combined Annual Aggregate for All Coverages? Insurer Offers Combined Multiyear Aggregate for All Coverages? Discount Range for Other Than Per Coverage Annual Aggregate Insurer Offers Reinstatement of Limits?
Cincinnati Yes Yes, for D&O, EPL and Fiduciary 10% No No
Claims Reporting, Extended Reporting Period, Selection of Counsel, Consent to Settle
Insurer Claim Must be Reported When? Extended Reporting Period Options and Cost. Is ERP Bilateral? Who Selects Counsel? (If Insured, is Panel Counsel Required?) Defense Costs Advanced as Incurred? May Insurer Settle W/Out Consent of Insured? If Hammer Clause is Included, how is It Applied?
Berkley Select Written notice: As soon as practicable but no more than 90 days after the expiration of the policy period Bilateral 1 Year – 100% 60-day automatic ERP included at no cost Carrier; insured may request own counsel, subject to carrier approval

Yes

No Policy includes 80/20 settlement provision

Your Objective Source: A Renowned Industry Expert

rick_betterley_186x175Richard S. Betterley, LIA, is the president of Betterley Risk Consultants (BRC), an independent insurance and alternative risk management consulting firm. BRC, founded in 1932, provides independent advice and counsel on insurable risk, coverage, alternatives to traditional insurance, and related services to corporations, educational institutions, and other organizations throughout the United States. It does not sell insurance or related services.

Mr. Betterley is a frequent speaker, author, and expert witness on specialty insurance products and related services. He is a member of the Professional Liability Underwriting Society. He joined the firm in 1975.

Mr. Betterley created The Betterley Report in 1994 to be the objective source of information about specialty insurance products. Now published six times annually, The Betterley Report is known for its in-depth coverage of management liability, cyber risk, privacy, intellectual property, and media insurance products.

More recently, Mr. Betterley created The Betterley Report Blog on Specialty Insurance Products, which offers readers updates on and insight into insurance products such as those covered in The Betterley Report. It provides him with a platform to more frequently and informally comment on product updates and newly announced products as well as trends in the specialty insurance industry.

Next Issue: October 2018

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The Betterley Report is distributed by International Risk Management Institute, Inc. (IRMI) and may be accessed by subscribers on IRMI Online. To purchase a subscription, call IRMI Client Services at (800) 827–4242 or learn more on IRMI.com.

Betterley Risk Consultants is an independent insurance and alternative risk management consulting firm. Founded in 1932, it provides independent advice and counsel to corporations, educational institutions, and other organizations throughout the U.S. It does not sell insurance nor provide insurance-related services.

Betterley Risk Consultants, Inc.
235 Forest Lake Rd. • Friendship, Maine 04547
Phone (774) 262–3460
email: [email protected]

The editor has attempted to ensure that the information in each issue is accurate at the time it was obtained. Opinions on insurance, financial, legal, and regulatory matters are those of the editor and others; professional counsel should be consulted before any action or decision based on this matter is taken. Note: all product names referred to herein are the properties of their respective owners.

The Betterley Report is published six times yearly by Betterley Risk Consultants, Inc. This material is copyrighted, with all rights reserved. ISSN 1089–0513

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