Socius Scoop – Spring/Summer Newsletter 2019
Management and Professional Liability
What…Hard Again?
By: Paul Lefcourt, Socius Co-Founder and Management Liability Practice Leader
Over the past year, several management liability insurance (MLI) carriers have changed their underwriting appetite/guidelines for privately-held D&O and EPL risks, nationally and most dramatically within California. Instigated primarily by many years of competitive underpriced premiums and broadened terms that have been unable to support escalating losses, these changes typically include one or more of the following:
• Increased rates • Increased retentions
• Reductions in coverage • Reductions in total limits offered
• Reductions or removal of wage and hour defense cost sub-limits
• Non-renewal of insureds based upon industry, asset size, financial condition and/or loss experience.
A Few Recent Management and Professional Liability Placements
| Account Type | Limits | Premium | Operation |
|---|---|---|---|
| EPL | $1M | $28,742K | Denny’s Franchise Group of Restaurants |
| Private D&O | $1M | $210K | Cannabis Distributor & Logistics Company |
| GL/PL | $1M/$3M | $83,650K | Substance Abuse Center |
| Public D&O | $150M in Excess D&O | $450K | Publicly Traded Oil & Gas Company |
D&O profitability under pressure as risks increase: Best
By: Gloria Gonzalez, Business Insurance.com
Profitability in the U.S. directors and officers liability insurance market remains pressured amid unfavorable claims trends and
a pricing environment that has not kept up with increasing risks, according to a new report from A.M. Best Co. Inc…
Cannabis coverage limited, may challenge industry: A.M. Best
By: Matthew Lerner, Business Insurance.com
Coverage available for the cannabis industry is limited and may not be adequate for those seeking to enter it, according to a report Tuesday from A.M. Best Co. Laws in 33 states and the District of Columbia allow the use of medical marijuana and 10 states, as well as D.C., have legalized recreational marijuana use, as well…
After #MeToo, whole industries have been blacklisted by insurers for sexual harassment liability coverage
By: Susan Antilla, The Intercept
A new report from Betterley Risk Consultants, shared with The Intercept, reveals that many of the world’s largest insureres will no longer conside whole industries for “employment practices liability insurance” (EPLI), which covers liability from “sexual harassment, sex discrimination, and other employee claims.”…
Property and Casualty Liability
“Flat” is the new down…CAT property on the rise
By: Derick Stitik, Socius Senior Vice President National Property Practice Leader
Floods, wildfires, earthquakes, and hurricanes, sure they capture the national headlines for a week or two but in reality, these disasters linger long after the cameras leave. As a whole the E&S market has struggled with claims management over the past several years, it’s been a true trial of fire by both frequency and severity. Overall the industry was not prepared for the frequent multiple catastrophes that occurred in the past three years. As tradition, the preliminary estimated loss reports are calculated shortly after an event, are aired in the industry news , and then set aside. Since 2016 we have experienced a trend where the CAT claims process has become an ongoing open event….
A Few Recent Property and Casualty Liability Placements
| Account Type | Limits | Premium | Operation |
|---|---|---|---|
| Pollution | $2M | $14K | Motor Vehicle Hydrogen Fueling |
| Commercial GL | $2M | $228K | Steel Erector |
| Primary Flood | $2.8M | $14.5K | Golf Course Clubhouse |
| Stock Throughput | $10M | $220K | Apparel Import Export /Distributor |
| Coastal Property | $2.2M | $17.8K | Condo |
| Coastal Property | $500K | $4K | MFG of Impact Doors |
| Property Coastal TX | $6.6M | $51K | Country Club |
N.J. legal weed deal: Everything to know about timeline, details and next steps
By: Payton Guion and Brent Johnson, NJ Advance Media for NJ.com
Exciting/Curious times here in the Northeast, particularly New Jersey. At Socius, we have been following the progress of the Cannabis Industry closely and staying in close contact with our carrier partners so we are ready when the floodgates open. So far, in other states, the many coverages that surround this industry have been E&S and we are ready to help. Stay tuned!…
Flood Coverage, TWIA, Workers’ Comp Relativities Among TDI Concerns in Legislative Report
By: Stephanie K. Jones, Insurance Journal
If you have risks in coastal areas of Texas or are in Tier 1 counties then you are well aware of the issues with FEMA and TWIA. The problem is that your clients are not educated enough and it is up to us to make sure they understand the need for flood and wind coverage with the right carriers…