Transcript PESTSURE Professional Liability Insurance Program including:

Professional Liability
Insurance Program
Including:
Directors’ & Officers’ Liability
Employment Practices Liability
Prepared by:
Angela DeGroot & Jackie Swope
Lockton Companies of Dallas, Inc.
717 N. Harwood, Suite 2500
Dallas, TX 75201
Table of Contents
Insurance Carrier………………Page 1
Program Criteria……………….Page 2
Overview of D&O………………Page 3
Overview of EPL……………….Page 4
Program Highlights…………….Page 5-6
Great American
Insurance Group
The Executive Liability Division (ELD) of Great American
Insurance Group, specializing in Directors’ and Officers’
(D&O) Liability Insurance, is located northwest of Chicago in
Schaumburg, Illinois. Comprised of specialists in marketing,
underwriting and claims, The ELD has been providing quality
professional liability insurance products and services since
1986. The ELD of Great American has the capacity to write
up to $25 million limits of liability.
Great American Insurance Group, based in Cincinnati, Ohio,
is one of the largest property & casualty groups in the United
States. A strong surplus position and proud tradition of
financial strength and stability make Great American the
choice of thousands of agents, brokers and customers
countrywide. The Group's lead company Great American
Insurance Company has maintained an A.M. Best Company
rating of "A" (Excellent) (financial size XIII) or better for more
than 25 consecutive years as of October 31, 2003.
1
Program Criteria
Through Lockton Companies, Great American intends
to provide Directors’ and Officers’ (D&O) Liability
Insurance coverage to the individual companies
associated with PestSure. Great American will offer
preferred premiums and coverage enhancements to
all of those members of PestSure that meet the
following criteria:
1.
2.
3.
4.
5.
6.
Privately-held Company.
Fewer than $100 million in assets.
Less than 1,500 employees.
Clean litigation history.
Financially sound.
An Organization structure of a Corporation, Limited
Liability Corporation (LLC), or Cooperative.
For PestSure members not meeting the above criteria,
Great American will evaluate the risk and try to offer
comparable terms.
2
Directors’ & Officers’
Liability
The D&O policy is made up of three parts:
I. Insuring Agreement A
Instances where the Directors and/or Officers are not indemnified
by the Company. The policy will pay on behalf of the Directors
and/or Officers for such Loss.
II. Insuring Agreement B
Instances where the Company has, to the extent permitted or
required by law, indemnified its Directors and/or Officers. The
policy will pay on behalf of the Company for such Loss.
III. Insuring Agreement C
Instances where the Company has become legally obligated to
pay as a result of a Claim.
The policy applies on an “all risk” basis to claims made and reported
within the policy period for Wrongful Acts commonly defined as:
“any actual or alleged act, omission, error, misstatement,
misleading statement, neglect, or breach of duty, or
Employment Practices Wrongful Act, by any Insured Persons
in their capacity with the Company; or any actual or alleged
act, omission, error, misstatement, misleading statement,
neglect, or breach of duty, or Employment Practices
Wrongful Act, by the Insured Entity, but only with respect to
Insuring Agreement C; or any matter claimed against any
Insured Persons solely by reason of their status with the
Company; or any matter claimed against any Insured
Persons arising out of their service as a director or officer of a
non-profit Outside Entity but only if such service is at the
request of the Company.”
3
Employment
Practices Liability
Employment Practices Wrongful Act shall mean a
Wrongful Act related to employment including but not
limited to:
1.
Wrongful dismissal, discharge or termination of
employment, whether actual or constructive;
2. Employment related misrepresentation;
3. Sexual or workplace harassment of any kind;
4. Discrimination;
5. Wrongful failure to employ or promote;
6. Wrongful discipline;
7. Wrongful deprivation of career opportunity, including
defamatory statements made in connection with an
employee reference;
8. Failure to grant tenure;
9. Negligent evaluation;
10. Failure to provide adequate workplace or employment
policies and procedures;
11. Wrongful retaliation; or
12. Employment related libel, slander, defamation, or
invasion of privacy.
4
Program
Highlights
These highlights are subject to individual underwriting
review and state regulation. The terms and conditions
may vary based upon underwriting consideration. Other
coverage enhancements or restrictions may be applied
according to various state regulations and individual
underwriting reviews. Additionally, PestSure risks that
are members of the ESOP Association may not be
eligible for this program, or may be required to use an
alternative distribution source.
 Premiums for $1 million of coverage (maximum)
as follows:
Employee Count
< 50 employees
< 100 employees
< 400 employees
< 750 employees
> 750 employees
Premium
$ 5,000
$ 6,500
$ 8,000
$12,000
$18,000
EPL Retention
$ 5,000
$10,000
$25,000
$50,000
$75,000
 Entity Coverage including Employment Practices
Liability Coverage.
 Punitive Damages Coverage where insurable,
including most favorable venue wording.
 Worldwide Coverage.
-continued
5
Program
Highlights
 Non-Profit Outside Directorship Liability Coverage.
 Non-cancelable except for non-payment of premium.
 Spousal Coverage.
 Employees defined as Insureds.
 12 Month Either/Or Discovery.
 No Family, Major Shareholder, SEC, or Past Acts Exclusions.
 Optional Fiduciary Coverage by endorsement (5% of
annual premium, $0 retention).
 Optional Third Party Liability for Employment Practices
(5% additional premium).
 Optional Duty to Defend provision at no additional
premium (not available in California).
 Optional separate Limit of Liability for Employment
Practices Claims for 25% additional premium.
 Zero Retentions on all Claims other than Employment
Practices Liability Claims and Third Party Liability.
5
The Executive Liability Division
Great American Insurance Group
1515 Woodfield Road, Suite 500
Schaumburg, IL 60173
Phone: (847) 330.6750 Fax: (847) 330.6890
www.GreatAmericanELD.com
www.GreatAmericanInsurance.com
Need an application or Specimen Policy?
Visit our Web site, www.GreatAmericanELD.com and click
on the Agent’s Desk section. There, you can download
applications & policies that are available in your state.
The coverages described in this presentation were compiled by the Lockton Companies and are
presented in an abbreviated form. All insurance products described are subject to availability and
underwriting qualifications. Other terms, conditions, and exclusions may apply. Policies may be
underwritten by Great American Insurance Company, Great American E & S Insurance Company
and/or Great American Insurance Company of New York.
The registered service marks "Great American" and "Great American Insurance Group" are the
property of Great American Insurance Company."
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