PRODUCT: Private Choice Premier for nonprofit organizations

COMPANY: The Hartford; coverage is written on Twin City Fire Insurance Company paper in most states

BEST RATING: A+ (Superior)

AVAILABILITY: Coverage is available through Hartford-appointed agents and brokers.

FOCUS: There are more than 1.5 million tax-exempt organizations in the U.S.—and as that number continues to grow, the potential for litigation against managers and board members of nonprofits is as prevalent as it is for for-profit entities.

“We had been hearing from our agents and brokers that they had customers who were looking for a more comprehensive solution,” says Mark Azzolino, senior managing director and head of middle market executive liability for The Hartford. “With our experience in providing management liability coverages and our goal to be a broader and deeper risk player for agents, brokers and their customers, enhancing and building out our management liability coverage to nonprofits was a natural next step.”

Private Choice Premier for nonprofits features a comprehensive set of coverages that help protect against directors, officers and entity liability (claims against everyday management and business decisions by directors & officers of an organization), employment practices liability (costly employment-related lawsuits such as wrongful termination or discrimination), fiduciary liability (losses from claims alleging breach of fiduciary duty), fidelity/crime (losses incurred as a result of fraudulent acts or theft by employees and more) and kidnap & ransom/extortion in the U.S. and abroad.

Additional coverage options include crisis management public relations reimbursement, workplace violence expense, increased wage and hour claim defense coverage and expense coverage for cyber breaches.

Azzolino says the Hartford seeks to match the best available coverage with the exposure, regardless of whether it is a for profit or a nonprofit. Case in point: the nonprofit form has $100,000 in data privacy event coverage, which protects against lawsuits for lax security or other causes of data breach, as well as response actions like credit monitoring and notification.

“It’s a huge exposure for nonprofits that rely heavily on individual contributions made online,” Azzolino says. “Being able to leverage The Hartford’s expertise in cyber liability is one example of where we are amending and enhancing our form to respond to the realities of the exposure environment.”

UNDERWRITING: The Hartford requires a management liability application, which can be the company’s proprietary form or another carrier’s application. To make the process more seamless, The Hartford uses publicly available information on nonprofits, such as Form 990. Coverage is on a primary basis; excess coverage is also available with The Hartford’s excess liability policy.

The Hartford offers up to $10 million in limits for each of the coverages available under Private Choice Premier: D&O, employment practices liability, fiduciary liability, crime (non-liability) and kidnap & random (non-liability). The policy can be customized by electing any or all of the five coverage parts, with the option to purchase a separate limit for each liability coverage part or a single aggregate limit for all liability coverage parts. The insured can also purchase optional defense costs outside the limit of liability.

MINIMUM PREMIUM: None.

TARGET: The Hartford prefers nonprofits with longer operating histories, but the product is a solution for any size nonprofit. Social services nonprofits—those that provide goods or services for the betterment of the individual or the community—constitute a “class of business where we have a strong level of comfort and some specific coverage built into the policy form,” Azzolino says.

The Hartford also targets trade and professional organizations, museums, chambers of commerce, libraries and foundations with tailored product offerings.

COVERAGE TERRITORY: Worldwide. Private Choice Premier is currently available in all states except Alaska, Louisiana, Vermont and Puerto Rico.

CONTACT: Mark Azzolino, senior managing director and head of middle market executive liability; One Hartford Plaza, Hartford, CT 06155; 860-547-7870.

Katie Butler is IA editor in chief.