Socius Scoop – Summer Newsletter 2015
Management and Professional Liability
The Hardening Management Liability Market for Non-Profit and Privately-Held Companies
By: Paul Lefcourt, Socius Management Liability Practice Leader
Gradually, over the last 4+ years, several management liability insurance (“MLI”) carriers have shifted their underwriting appetite/guidelines for their non-profit and privately-held insureds nationally; most dramatically in California….
A Few Recent Management and Professional Liability Placements
| Account Type | Limits | Premium | Operation |
|---|---|---|---|
| For Pro t D&O/Crime | $1,000,000 D&O/$250,000 Crime | $24,500 | Start-up company that manages nursing homes |
| IP Infringement | $1M | $16,000 | video editing for major car brands in the US |
| Privacy/Network Security | $10,000,00 | $105,000 | Auto dealer with about 2M PPI (personal identifiable information) records |
Data Breaches Threaten Small Businesses: Ponemon
A Ponemon Institute survey of small businesses throughout the United States found that 55 percent of those responding have had a data breach, almost all involving electronic records….
California EPLI cases by the numbers
Using Advisen’s MASCAd database containing about 255,000 cases, Advisen specifically took a look at EPLI and D&O cases. The database focuses on the largest cases….
XL Catlin expects overall rise in private D&O rates; ACE, Travelers see more demand
XL Catlin Group says pressure to improve results will lead to rate increases of up to 5 percent overall on private company D&O/EPLI policies this year….
Property
Hard Selling in a Soft Market
By: Derick M. Stitik, SVP Socius Property Practice
Well friends, here we are again pushing through a continuing softening property market. The cycle continues, the insurance industry continues to perform at high return rates for investors, capacity is abundant, and pricing continues to slide….
A Few Recent Property Placements
| Account Type | Limits | Premium | Operation/Occupancy |
|---|---|---|---|
| Property including Wind | $5,256,000 | $19,300 | Astronomical Observatory |
| Earthquake/DIC | $50,944,688 | $200,000 | Resort and Spa |
| Property including Wind | $29,147,708 | $184,214 | Investment Firm |
Nepal devastation a ‘wake-up call’ for vulnerable region
Rapid urbanization and minimal construction building codes have been identified as issues that increased the severity of destruction of Nepal’s most recent earthquake….
Florida Commissioner McCarty Touts State Regulation Before Congress
Kevin McCarty spoke to the US Senate Committee on Banking, Housing and Urban Aairs, 4/28/2015 & to the US House of Representatives Subcommittee on housing and Insurance 4/29/2015 on behalf of the National Association of Insurance Commissioners….
Casualty
Food Safety – The Changing Landscape of Product Recall
By: Rodney Nubin, SVP Socius Casualty Practice
Product recall, are two words no food manufacturer or processor wants to see next to their name. But the food industry is one of the most exposed industries to a product recall….
A Few Recent Casualty Placements
| Account Type | Limits | Premium | Operation/Occupancy |
|---|---|---|---|
| General Liability | 1/2/2 Limits | $62,316 | Commercial & residential plumbing contractor |
| Excess Liability | $15M | $63,730 | Lutheran Churches |
| General Liability | 1/2/2 Limits | $52,500 | Contractor for high-end residential projects |
Punitive damages and taxes
Much is said about punitive damages and how they are used to punish wrongdoers. Plaintiffs dream of large punitive damage awards….