PRODUCT: Hiscox C-Suite® Management Liability
COMPANY: Hiscox
BEST RATING: A (Excellent)
AVAILABILITY: Coverage is available through Hiscox-appointed agents and brokers.
FOCUS: In 2016, U.S. businesses lost an average of $1.13 million to employee theft and dishonesty, according to the 2017 Hiscox Embezzlement Study.
In response to the rapidly evolving set of challenges and risks executives face today, Hiscox recently launched C-Suite® Management Liability—a management liability and crime solution “specifically designed to meet the needs of private and not-for-profit clients,” says Patrick Mitchell, management liability product head, Hiscox USA.
Although Hiscox has been writing private and not-for-profit management liability and crime for “quite some time now” and the legacy product is “very good,” Mitchell says, “we specifically drafted C-Suite to be not only a broader policy form, but also a policy that’s as clear and concise as possible, taking away the legalese you see in other forms.”
C-Suite asks only for the minimum information necessary for underwriting and packages a variety of management liability needs into a single form—resulting in significant time savings and convenience for both agency and policyholder.
And “it achieves all this without sacrificing our broad appetite, scope of coverage or commitment to superior underwriting and claims service,” Mitchell adds.
COVERAGE DETAILS: The management liability policy includes directors & officers, employment practices liability, fiduciary and employed lawyers coverages. Sublimits are listed on the dec page. Insureds enjoy a 180-day extended reporting period following the termination of a policy, as well as built-in coverage for pre-claim inquiries for insured persons, such as informal investigations brought by a governmental entity.
For EPLI, which includes a workplace violence sublimit, wage and hour is available for select classes. Fiduciary liability includes full settlor coverage and sublimits for HIPAA, voluntary compliance loss and civil penalties. Employed lawyers professional liability includes coverage for emotional distress and mental anguish, as well as legal services performed for the company, plus moonlight and pro bono services.
Crime coverage, open to most industries including non-profit organizations and municipalities, applies to losses involving virtual currencies, and protects insureds against tech fraud, extortion and more traditional types of crime and fraud, such as embezzlement. Features include, but are not limited to:
- Claims of tech fraud, including computer fraud, funds transfer fraud, cyber deception, customers’ accounts and erroneous transfer.
- Third-party coverage for theft from a customer, client, vendor or others, even without a written contract.
- Coverage for employee theft of an executive’s property, forgery of an executive’s accounts, and extortion.
- Coverage for a theft by an employee of an insured’s vendor.
- Coverage for employees, even when the insured is aware of their prior theft or history of dishonesty.
UNDERWRITING: Coverage is written on a primary or excess basis, both admitted and surplus. Mitchell calls the ap-plication process “streamlined, online and dynamic.”
“No login is needed,” Mitchell points out. “You simply go to the website, answer a few questions and the application is tailored to you. There are a lot fewer questions than the typical application. That really goes back to us trying to transform the experience for the insured.”
MINIMUM PREMIUM: N/A.
TARGET: The sweet spot for management liability is businesses in the professional services, retail, hospitality and construction industries with less than 1,000 employees, but policies are available for any size
company.
For crime, the appetite is broader in terms of company size. Hiscox is targeting a wide variety of classes, with an emphasis on construction, hospitality, restaurants, retail, service businesses and transportation. “We’re lucky to have a very broad appetite with only a few excluded classes,” Mitchell says.
COVERAGE TERRITORY: Worldwide, per terms of policy.
COVERAGE AVAILABILITY: For management liability, Hiscox is admitted in 46 states and expects to be admitted nationwide by the end of the third quarter. For crime, Hiscox is admitted in all U.S. states.
CONTACT: Patrick Mitchell, management liability product head, Hiscox; 520 Madison Avenue, 32nd Floor, New York, NY 10022; 646-560-9358.
Jacquelyn Connelly is IA senior editor.
