The FINANCIAL -- Zurich, one of the leading property and casualty insurance providers globally and in North America, on February 8 introduced Financial Institutions Select, a new management liability/professional liability policy that reflects the needs of today’s financial institutions and includes more than 75 new coverage enhancements to respond to the current landscape of risk faced by the management of financial institutions.
The Zurich Financial Institutions Select insurance policy offers ten coverage options to choose from: Management Liability, Excess Side-A Liability, Private Company Securities, Public Company Securities, Employment Practices Liability, Fiduciary Liability, Professional Liability, Lender Liability, Trust Department Liability and Security & Privacy Protection.
"Zurich worked closely with brokers and customers to enhance our new menu-driven Management Liability policy and include the critical definitions and coverage options they requested,” said Christopher Taylor, president of Zurich North America Commercial's Financial Enterprises unit. "Financial Institutions Select is customizable and offers a broad array of coverages and additional options."
Among the highlights of the new groundbreaking policy are:
Retired Independent Directors Side A coverage that provides an additional level of protection for retired independent directors with personal Side A coverage after all other insurance protection is exhausted
An Environmental Mismanagement extension that provides coverage for traditional management liability exposures, such as securities claims, retaliation claims against insured persons, non-securities misrepresentation claims and Side A coverage claims arising out of or attributable to actual, or alleged, climate change or global warming.
Non-rescindable Side A coverage
Guaranteed right to an initial public offering D&O insurance quotation (Private Securities coverage section)
Management Liability coverage that offers a broadened definition of claims that includes costs associated with civil, criminal, administrative or regulatory investigations of an Insured Person
A unique e-discovery endorsement offering e-discovery costs that are part of otherwise-covered Defense Costs and providing additional separate limits with no retention plus, no additional cost readiness assessments and preferred rates
Professional Liability Coverage that provides insurance for claims against the entity for a broad range of services. Optional coverage is available for Broker Services Liability, Insurance Agent Services Liability and IRA/Keogh Services Liability
An Extended Reporting Period (ERP) enhancement that allows any individual Insured Persons to elect this option at customized rates, if the policyholder declines to purchase the ERP
Run-off Coverage, if selected, that offers coverage for claims arising from pre-acquisition wrongful acts of directors and officers
Security & Privacy Protection offering first party and third party coverage with a supplementary limit for Security breaches
An expanded definition of subsidiaries that now includes limited liability companies, foundations and political action committees sponsored by the policyholder
"Zurich has decades of experience in working with financial institutions and has a dedicated team that studies their risks and creates solutions to help address them," Taylor said. "Financial Institutions Select is designed to meet the needs of financial enterprises' directors and officers in today's highly litigious and uncertain business environment."
Taylor said a key to the value of Financial Institution Select is the number of innovative loss prevention and control services that include:
e-discovery consulting services
An E-risk Assessment online tool to help assess security and privacy risks
An EPL Hotline offering Zurich customers legal advice on employment practices issues
In-depth, educational risk management and prevention guides for D&O Employment Practices Liability and ERISA Fiduciary Liability
Access to Zurich Services Corporation risk engineers, a global network of over 1,000 professionals, including specialists in financial institutions
This is intended as a general description of certain types of insurance and services available to qualified customers through the companies of Zurich in North America. Your policy is the contract that specifically and fully describes your coverage. The description of the policy provisions gives a broad overview of coverages and does not revise or amend the policy. Insurance coverages are underwritten by individual member companies of Zurich in North America, including Zurich American Insurance Company. Certain coverages are not available in all states. Some coverages may be written on a nonadmitted basis through licensed surplus lines brokers. Risk engineering services are provided by Zurich Services Corporation.
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