PRODUCT: Management Liability

COMPANIES: Risk Placement Services and Fortegra Specialty Insurance Company

BEST RATING: A-

AVAILABILITY: Appointed agents and brokers only.

FOCUS: The average private company directors & officers claim is nearly $700,000, according to AdvisorSmith, and the average employment practices liability insurance claim is greater than $70,000, according to AmTrust. Further, over the past 10 years, there have been on average 100,000 Equal Employment Opportunity Commission (EEOC) complaints per year, according to the federal agency.

“Management Liability combines EPLI, D&O and fiduciary liability coverages in a single policy," says Greg Seligman, area vice president, executive lines, RPS. “Backed by RPS's deep expertise in executive lines, and the ability to swiftly receive quotes and coverage online, this new product gives small business owners the confidence and stability to continue serving their customers without disruption."

COVERAGE DETAILS: RPS places over $100 million of private company D&O and EPLI policies annually. In 2007, RPS created a scoring methodology that assesses the strength of the private company D&O and EPLI policy forms by utilizing approximately 150 different criteria. RPS scored every major carrier's product and worked to sculpt the best possible suite of endorsements for each policy to provide clients with the strongest policy wording available.

Available coverages and policy highlights include:

• Fair Labor Standards Act (FLSA) defense sublimit of $100,000
• Industry-leading conduct exclusions favorable to insured
• Fully non-rescindable
• Full severability of the application and all exclusions
• No antitrust or unfair trade practices exclusion
• 100% allocation for defense costs

Management Liability offers qualifying risks a standalone EPLI option, enhanced with complimentary Side A D&O coverage.

UNDERWRITING: Targeted classes include car dealerships, construction, domestic services, e-commerce, gas stations, hotels and hospitality, insurance brokers, commercial and consumer legal services, manufacturing, medical non-patient contact, pharmaceuticals and biotech, professional services (excluding legal services), realtors, restaurants, sports clubs, technology, telecom, utilities, and wholesale distribution.

Submissions with less than $50 million in revenue and no more than 300 full-time employees can be quoted, bound and issued instantly.

TARGET: This new product is designed for private companies that have been in operation for at least 18 months, with less than $250 million in revenue and less than 300 full-time employees.

COVERAGE AVAILABILITY: All U.S. states.

CONTACT: Greg Seligman, area vice president, executive lines, RPS; 2850 Golf Road, Rolling Meadows, IL 60008; 312-319-3952.

Will Jones is IA editor-in-chief.