Executive Risk Insurance products on surplus lines paper provides coverage to a broader range of industries including health care, education, private equity (PE), and more.
PRODUCT: Executive Risks Insurance.
COMPANIES: Coalition; Lloyd's.
AVAILABILITY: Appointed agents and brokers only.
FOCUS: In the modern business landscape, there are entirely new risk categories that companies must navigate, particularly in the realms of directors & officers, employment practices liability, fiduciary liability and crime insurance. These risks have evolved as organizations increasingly embrace digital transformation and shift toward leveraging online technologies. The intricate landscape of social media, the dispersion of the workforce, and the cascading repercussions of cyber threats further contribute to the emergence of novel executive risks.
To insure against these emerging risks, Coalition launched its Executive Risks Insurance products in February 2022. Coalition now offers its Executive Risks Insurance products on surplus lines paper to be able to offer coverage to a broader range of industries, including health care, education, private equity (PE) and venture-backed portfolio companies, nonprofit organizations, and more.
“When policyholders choose Coalition for their Executive Risks Insurance, they get more value during their policy term, including before the policy is bound and long after," says Patrick Mitchell, Coalition's executive risks lead. “As businesses continue their digital transformations, they also adopt greater risks. Our risk management services provide policyholders with tools to mitigate this risk and added value, whether or not they ever experience a claim, making them smarter and safer in the process."
COVERAGE DETAILS: Subject to underwriting, for each type of coverage, Coalition's Executive Risks Insurance products available on surplus lines paper include:
D&O: Offers comprehensive protection with key coverages, including no settlement clause, 100% defense allocation, defense outside the limits (up to $1 million) and public relations and crisis management coverage (up to $150,000).
EPLI: Offers comprehensive protection with key coverages, including defense outside the limits, wage and hour coverage, immigration coverage, workplace violence coverage, retention waiver with a 10% retention reduction for the first settlement opportunity, and no settlement clause.
Fiduciary liability: Includes excessive fee coverage; settlor coverage; civil penalties for violations of ERISA sections 502(i), 502(l), and 502(c); and civil penalties for violations of the Pension Protection Act, COBRA, HIPAA, Section 4975, the Health Care Reform Act and United Kingdom pensions.
Crime: Includes coverage for fraudulent impersonation—also known as social engineering—and includes electronic data restoration, investigative expenses, ERISA coverage, and automatic coverage for newly formed subsidiaries. It also covers independent contractors as employees.
UNDERWRITING: Appointed brokers can log into Coalition's portal to receive a bindable quote for D&O, EPLI, fiduciary and crime in just a few minutes. Minimum premiums vary by the line of business but may be as low as $250.
TARGET: All industries with up to 1,000 employees and $500 million in assets.
COVERAGE AVAILABILITY: All U.S. states.
CONTACT: Patrick Mitchell, executive risks lead, Coalition.
Will Jones is IA editor-in-chief.
