PRODUCT: Kidnap, ransom and extortion coverage
COMPANY: Victor O. Schinnerer & Co./Hiscox, Great American, Catlin (admitted)
BEST RATING: A
AVAILABILITY: Agents and brokers can access the KR&E program through underwriting manager Schinnerer.
FOCUS: Schinnerer looks to continue its significant growth in this management liability specialty by launching a new management liability program for private companies that can add KR&E protection. Without disclosing numbers, Steve Cohen, senior underwriting manager of management liability, says the company “anticipates accruing significant growth in 2014 over our 2013 results.” In particular, Cohen touts Schinnerer underwriters’ flexible appetite for a wide range of KR&E risks worldwide.
The new product, Private Company Management Liability, is a package that provides D&O liability, EPLI, crime and fiduciary. KR&E can be arranged as a separate policy for Private Company Management Liability insureds. The company has gained rate and form approval in 32 states for its new package and awaits regulatory approvals in 17 states (Hawaii excluded). With Private Company Management Liability, primary-only limits can reach $10 million per occurrence and aggregate. Schinnerer has been selling monoline KR&E for the past 15 years to privately owned companies, publicly owned businesses and nonprofit organizations, as well as high net-worth individuals.
UNDERWRITING: Schinnerer offers KR&E coverage on a primary basis only. Policies cover ransom and extortion payments, loss of ransom or extortion, payment during ransom delivery and other related expenses stemming from a kidnap, extortion, detention or hijack. Evacuation and repatriation are among the add-ons that can be arranged at additional cost. Policyholders receive access to the crisis management services of London-based global business risk consultancy Control Risks. KR&E capacity ranges to $50 million with no deductible. Great American supplies the paper; Hiscox provides reinsurance.
MINIMUM PREMIUM: Varies by risk.
COVERAGE TERRITORY: For the KR&E program, all states except SD and WA.
CONTACT: Steve Cohen, senior underwriting manager of management liability, Schinnerer; 2 Wisconsin Circle, Chevy Chase, MD 20815; 301-961-9851. Ron Lent is an IA contributor.