Travelers, which has been covering management liability exposures of nonprofit organizations for more than 15 years, is mounting a marketing campaign to raise awareness of the varied management liability coverage needs of nonprofits.
PRODUCT: Wrap+® for Nonprofit Organizations
COMPANY: Travelers (admitted, non-admitted)
BEST RATING: A+
AVAILABILITY: Travelers does business with brokers and appointed independent agents. For a possible company appointment to sell the company’s management liability products, go to https://lyncagency.travelers.com.
FOCUS: Travelers, which has been covering management liability exposures of nonprofit organizations for more than 15 years, is mounting a marketing campaign to raise awareness of the varied management liability coverage needs of nonprofits. John Trefry, Travelers vice president and D&O product manager, singles out one of the new features of the package: defense costs outside policy limits. The carrier has expanded eligibility to more than two dozen types of nonprofit organizations There are “some two million nonprofit organizations out there,” and only a small percentage purchase needed D&O and EPLI protection, according to Trefry. Trefry notes that more than 63% of nonprofits have faced D&O claims in the past 10 years, based on a recent survey by research organization Towers Watson.
UNDERWRITING: Wrap+ D&O includes three main insuring agreements for primary coverage. Insurance Agreement A covers loss incurred by the insured persons that are not indemnified by the insured organization. Insurance Agreement B covers the insured organization for loss it has paid to or on behalf of an insured person. Insurance Agreement C addresses the insured organization’s own loss resulting from actual or alleged wrongful acts. The D&O definition of “insured” covers board members, company officers, trustees, employees, volunteers and committee members. Policies have a modified consent to settle clause for policies written with defense costs inside policy limits. Covered loss includes defense expenses, settlements, judgments and punitive, exemplary and multiplied damages. Wrap+ packages various primary management liability coverages, including directors and officers liability, employee practices liability, fiduciary liability, cyber risk, crime, miscellaneous professional liability, kidnap and ransom and identity fraud expense reimbursement. Per-claim and aggregate limits range from $250,000 to $25 million, though most are $1 million/$1 million or less. Self-insured retentions of zero are available. Claims-made forms are used. Defense costs can be written inside or outside of policy limits. Contract language stipulates “most favorable venue” wording for covering punitive or exemplary damages where permitted by law. Wrap+ is offered on an admitted basis in 49 states, and written on a non-admitted basis in Vermont.
TARGET: Underwriters favor charitable, recreational and social service organizations. Examples include associations, foundations, clubs, membership organizations, homeless shelters and food banks.
COVERAGE TERRITORY: All states.
CONTACT: John Trefry, vice president and D&O product manager, Travelers Bond and Financial Products, One Tower Square, 3 SHS, Hartford, CT 06183-9062; 860-277-9252; jtrefry@travelers.com; www.travelers.com.
Ron Lent is an IA contributor.
