Hiscox Brings Kidnap & Ransom Insurance To U.S. Market

Gary Noesner, senior vice president of crisis and security management at Control Risks, said in a statement, "The Hiscox approach to K&R coverage in combination with Control Risks' expert response services is invaluable to risk management and security departments in dealing with complex security threats."

Mr. Noesner was chief of the FBI Crisis Negotiation Unit for the Critical Incident Response Group until 2003 and negotiated more than 120 kidnappings for the FBI.

Describing Control Risks as a leader in its industry, Ms. Zanotelli said, "You need to have the utmost confidence in the people you will be relying on to navigate you through a crisis. That is no time to discover that there are crucial differences in the expertise, reputation and logistical capabilities provided by the security firms offering these services."

Ms. Zanotelli and Mr. Rogers bring nearly 30 years of combined experience in K&R insurance and other security-related concerns to Hiscox, the company said.

Ms. Zanotelli was previously the executive vice president of Willis' Special Contingency Risks Practice, and Mr. Rogers was senior vice president there.

Before joining Willis, the two experts worked with AIG's Crisis Management division in North America for security related products such as K&R, product tampering, workplace violence and terrorism. Ms. Zanotelli led those operations, while Mr. Rogers was the underwriting manager for the U.S. Northeast region and Canada.

Other recent product announcements came from Liberty International Underwriters, Fireman's Fund, RLI, Navigators and CNA.

On April 1, Liberty International Underwriters said it was teaming up with Business Risk Partners to expand its insurance agents and brokers professional liability coverage.

Provided on an admitted basis in most states, the expanded policy offers a broad definition of professional services, including claims handling, risk management, expert witness and coverage for Web-based content, according to the announcement from the New York specialty liability division of Boston-based Liberty Mutual.

LIU and BRP offer $10 million in capacity for primary or excess placements with 48-hour turnaround time on submissions, the statement said.

Explaining the need for the expansion, Bruce Eisler, LIU's senior vice president of professional liability, said, "Over the past few years, insurance agents and brokers have seen increased public scrutiny in every aspect of their jobs."

"We chose to team up with Business Risk Partners because of their reputation for providing prompt service and intelligent, creative underwriting solutions," he added. "Through this program, agents and brokers can tap into the combined strength of two highly experienced underwriting teams to help protect both their business and personal assets."

BRP, based in Windsor, Conn., is an online underwriter of E&O coverage for more than 100 classes of business professionals. Together, LIU and BRP are targeting a wide range of insurance agents and brokers, including life-health and property-casualty agents, wholesale brokers, consultants and MGA/Program administrators.

Policy highlights include:

o Punitive damages coverage where allowed by law

o Limited insolvency exclusion

o Expanded definition of professional service to include Internet-based transactions

o Personal injury coverage

o No mold or pollution exclusions

Fireman's Fund also announced an expansion in professional liability coverage this month, but in the Novato, Calif.-based company's case, the liability coverage is for variety of medical facilities.

In an April 2 announcement, John Chace, vice president and executive product director of professional liability at Fireman's Fund, said, "This is an industry that we already have a long-standing relationship with," noting that his company already provides liability coverage to some 200,000 health care professionals across the country.

Expanding its strike zone, Fireman's Fund will now consider submissions for a wide range of facilities, including home health, medical centers, medical group homes, social service centers, ambulatory surgery centers, testing and treatment labs, urgent care facilities, and dialysis centers.

Along with its current coverage for health care professionals, this expansion by Fireman's Fund in the medical facilities market links general liability, professional liability, excess, inland marine and related property all in one place.

"It's one-stop shopping," Mr. Chace said. "We are bringing a fresh perspective and expanded product line-up to the market. We also have the ability to offer excess liability protection in these collateral lines."

Hugh Burgess, chief underwriting officer of Fireman's Fund Specialty Insurance, emphasized the company's ability to tackle complex coverages. "We can take on complicated risks other companies can't touch because of our relationship with our parent company, Allianz SE, one of the world's largest insurance companies," Mr. Burgess said.

Tackling an entirely different kind of risk in another announcement released on the same day, Fireman's Fund said it is also expanding its yacht and watercraft coverage.

The enhanced coverages under the company's Prestige Yacht and Watercraft policies will protect against uninsured/underinsured vessels, vermin damage and contents onboard.

Highlighting the uninsured/underinsured coverage as something that is offered by few insurers, Fireman's Fund also announced a lower electronics deductible and expanded coral reef and sea grass coverage.

Explaining the coverage offering protection from total loss resulting from vermin damage, the company said vermin damage is of particular concern in the Pacific Northwest, where muskrats and otters have been known to chew through exposed rubber portions of engine exhausts.

Other additions to Fireman's Fund's coverage include protection against damage to mopeds, scooters, passports and other necessary forms of identification while they are onboard.

This is a complement to the existing policies that already feature agreed value (to protect against depreciation), coverage for captain and crew under Admiralty Law including the Jones Act, protection against pollution fines up to $25,000 including "sudden and accidental" events, and a broad definition of personal effects.

Peoria, Ill.-based RLI Corp. said RLI Transportation, a division of RLI Insurance Company, is expanding its small fleet trucking program to include new retail agents.

The program had previously been limited to existing, appointed agents.

The expansion is intended to provide more retail agents with direct access to RLI.

RLI Transportation Vice President of Underwriting Daniel Meyer explained, "With this enhancement we're satisfying the demands of our producers. They want to bypass the wholesale channel. By cutting out the middleman, our (retail) agents experience a streamlined quote process and ultimately a faster quote turnaround."

Additionally, the program is now available to truckload and less-than-truckload carriers with up to 19 units conducting the following operations: dry van, refrigerated, auto-haulers, dry tank (nonhazardous), expedited delivery, and moving and storage (excluding warehousing).

Lines offered under the small fleet trucking program include: auto liability, physical damage, general liability, nontrucking AL, trailer interchange and follow-form excess.

The small fleet trucking program excludes Alaska, Hawaii, Mass. and La.

The Navigators Group in New York announced that its Navigators Pro division has introduced the SPAC InNAVation coverage endorsement to its primary directors and officers liability policy for special purpose acquisition companies.

In an April 9 announcement, the company said it has been offering coverage to SPACs for more than three years, targeting specific industries with experienced, high-quality management teams.

SPAC InNAVation(SM) provides enhanced D&O coverage protection and certainty to directors and officers of publicly-traded SPACs in the event of a securities class-action lawsuit, Navigators said, noting that the SPAC InNAVation endorsement protects directors and officers from covered loss arising out of alleged civil violations of Sections 11 and 12 of the Securities Act of 1933.

(Editor's Note: Section 11 of the 1933 Act, which relates to registrations of securities offerings, imposes strict liability for material misrepresentations made in registration statements to everyone involved.)

Navigators said coverage under the endorsement is in addition to the coverage already provided under the primary Navigators Pro D&O policy for alleged violations of the Securities Exchange Act of 1934, the Sarbanes-Oxley Act of 2002, any similar state securities laws, and administrative actions brought by the Securities and Exchange Commission or comparable state regulatory agencies.

Other enhancements provided by the endorsement are automatic target company acquisition coverage and a broader definition of claim and company.

Separately, Navigators Pro said it also has introduced the Tech InNAVation Information Technology Professional Liability policy for information technology services, software, Internet consulting, technology development and Web design firms.

Tech InNAVation(sm) provides coverage for technology firms and their partners, directors, officers, employees and independent contractors who are legally obligated to pay covered losses resulting from rendering or failing to perform their duties.

Under the policy, Navigators said that a broad definition of Cyber and Technology Services includes system or network analysis, programming, consulting, marketing, designing, electronic and computer-based services.

The policy is specifically designed for technology service providers with revenues up to $150 million.

Limits of liability up to $10 million are available for select insureds based upon underwriting evaluation.

Chicago-based CNA is targeting a wide range of building equipment installation, dismantling and repair contractors as well as drillers in low- to moderate-risk industries, the company said, announcing the introduction of its Building Equipment Installation and Repair (BEAR) program.

"We've been successfully insuring contractors for more than 60 years, and our BEAR program enables us to meet the insurance needs of the millwright and water well drilling industry through the development of coverages designed specifically for this segment," said John Tatum, vice president of CNA's Construction segment.

CNA's BEAR program is targeted to accounts with at least $2 million in total revenue and nine or more employees.

Eligible operations include:

o Installation of conveyor systems, dumbwaiters, dust collecting equipment, incinerators and tube systems

o Dismantling of machinery and other industrial equipment

o Limited steel erection for testing equipment for the production process (not exceeding 20 feet)

o Millwrights and water well drilling.

CNA will offer its full portfolio of coverages, including but not limited to general liability, workers' compensation, property/inland marine and automobile coverages. In addition to these coverages, CNA has developed enhanced coverages for this program, such as general liability extension endorsement and riggers liability.