Kennels, groomers and doggie daycare centers as well as animal shelters and humane societies all have something in common–they are part of a burgeoning industry dealing with emotionally charged issues and unique insurance needs.

Thus the need for a tailor-made liability product including directors and officers liability and employment practices liability, said David Donovan, vice president Middle Markets for Specialties unit, Zurich North America Commercial.

“Oftentimes people are so attached to their pets that they are like people to them,” Mr. Donovan said. Because of this attachment, pet owners can be quick to sue if something goes wrong.

He noted that the pet segment, notably the doggie daycare area, is one of the “fastest growing business segments in America.” Similar to other industries, the D&O policy is there for cases of alleged mismanagement.

The D&O insurance in Zurich's new integrated management liability policy targeting this segment covers the directors, officers and the entity, he said. While a small grooming business may not have a board of directors, he said, the policy also covers the management team.

“These smaller entities more and more are buying for employment practices liability,” he said, “which crosses all lines–large, small, middle, private, nonprofit public–exposures in all types of entities where people are employed.”

Zurich offers a similar package of coverage to nonprofit groups like rescue groups and animal shelters.

Although exposures are similar to for-profit businesses, Mr. Donovan noted that in nonprofits there also is an exposure for misappropriation of funds, such as funds collected being directed for personal use. The policy would protect the organization and the officers with respect to this exposure, he said.

The product debuted in 2008 and so far has had a lot of attention from brokers wanting more information.

“It's a great product; it's a growing area and the need is there,” Mr. Donovan said.

The plan offers D&O liability coverage integrated with EPLI and risk management services that can be combined in a single form.

Key features of the plan include:

o D&O additional limit–$1 million defense

o EPL additional limit–$1 million defense

o Domestic partner coverage

o Prior acts coverage

o Duty-to-defend policy

o Outside directorship coverage

o Claims made within the policy period

o Entity coverage with no products liability exclusion

o Global coverage

o Punitive damages coverage

Zurich said it also provides a suite of risk management tools to help policyholders manage potential exposures. These complimentary services include educational resources about current employment law issues, compliance training for management and staff, and access to legal hotline services.

For information on other specialty products introduced this month, click on the link to related article, “Beyond Kennel Coverage” below.

Special Reports /

Is D&O Going To The Dogs--Or Dog Groomers?

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