PRODUCT: Executive Risks Insurance Designed for Not-for-Profits

COMPANIES: Underwritten by Zurich American Insurance Company

BEST RATING: A+

AVAILABILITY: Appointed agents and brokers only.

FOCUS: Coalition's Executive Risks Insurance Designed for Not-for-Profits combines automated underwriting and data collection and real-time analysis with a more streamlined application process to offer directors & officers, employment practices liability insurance, fiduciary liability and crime insurance.

“Not-for-profits face many of the same exposures as for-profit businesses—such as wrongful termination, conflicts of interest, breach of fiduciary duty and theft—but may not have the time or resources to address these liabilities," says Patrick Mitchell, executive risks lead, Coalition. “Keeping these organizations safe requires a new approach to executive risks coverage that moves and adapts to the changing risk landscape and focuses on preventing digital risk before it strikes."

COVERAGE DETAILS: Subject to underwriting, for each type of coverage, Executive Risks Insurance Designed for Not-for-Profits includes:

• EPLI: Offers comprehensive protection with key coverages, including defense outside the limits, wage and hour coverage, immigration coverage, workplace violence coverage, retention waiver and settlement clause.
• D&O: Offers comprehensive protection with key coverages, including no settlement clause, 100% defense allocation, defense outside the limits up to $1 million, public relations and crisis management coverage up to $150,000, retention waiver with a 10% retention reduction for the first settlement opportunity, and broad wording.
• 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—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. Property is included as part of the fraudulent impersonation insuring agreement.

UNDERWRITING: Coalition's online portal allows brokers to generate quotes in minutes. Also, brokers can import Form 990 to answer financial (and other) D&O questions and can import Form 5500 to complete fiduciary questions.

TARGET: The target demographic for this product is nonprofit organizations, including museums, sports clubs, environmental groups and zoos.

COVERAGE AVAILABILITY: D&O, EPLI, fiduciary and crime products are available in all states except Kentucky and Alaska. EPLI is not available in California.

CONTACT: Patrick Mitchell, executive risks lead, Coalition..

Will Jones is IA editor-in-chief.