New private company management program launches

New private company management program launches | Insurance Business America

New private company management program launches
Producers working with privately owned companies have a new option in sourcing management liability risk.

The program, offered by underwriting manager Victor O. Schinnerer & Company, provides directors and officers (D&O) liability and employment practices liability (EPL), as well as other management liability coverages. Designed specifically for private companies, the program is meant to protect management against allegations such fraud, unfair competition, discrimination, harassment, wrongful termination and benefit plan mismanagement.

Companies from a broad range of industries and with up to $1 billion in total assets are eligible for the coverage. All policies are offered on admitted paper through Catlin US.

Steve Cohen, senior vice president and management liability practice leader for Schinnerer, said the Private Company program represents an ideal new venture from the underwriting manager.

“With more than 20 years of management liability experience, Schinnerer  has developed a Private Company program that is a fitting complement to our current suite of products,” Cohen said in a statement. “This thoughtfully crafted program is a competitive, state-of-the-art management liability solution ideal for both first-time buyers and seasoned policyholders.”

Schinnerer says the advantage of its program is the incorporation of “essential components” typically only added by endorsement, including: severability among insureds for exclusions and representations, 25% asset threshold for automatic coverage of new acquisitions or benefit plans, a softened 80/20 EPL hammer clause, prevailing plaintiff’s attorney’s fees for EPL loss, non-rescindable D&O and fiduciary liability coverages, and D&O pre-claim inquiry response for non-indemnified loss.

The Private Company program is currently available in 32 states, with plans to expand as state filings are approved. Premiums start at $15,000 with limits up to $10 million.

Producers interested in the program need not be appointed unless mandated by state law.

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