Arch introduces new D&O capacity
INSURANCE MARKET UPDATE
Arch Insurance Group, New York City, formed a new $40 million facility for ‘A’ Side Directors and Officers liability. The coverage will be offered in addition to Arch’s existing $25 million capacity for standard D&O. The new ‘A’ side coverage protects individual directors and officers in situations where the corporation is unable to indemnify them due to state indemnification laws of insolvency. It also provides additional protection for directors and officers when primary coverage and corporate indemnification is depleted or unable to respond. Arch’s Executive Assurance Group will underwrite the new coverage. Arch Insurance Group is a division of Bermuda-based Arch Capital Group Ltd.
Zurich NA Small Business allies with Foremost
Zurich North America Small Business, Schaumburg, Illinois, formed a cross-selling alliance with its sister company, Foremost Insurance Company, Grand Rapids, Michigan, under which Zurich will offer its Builders Risk Plan to the Foremost agency network. In return, Zurich Small Business agencies will have access to Foremost’s specialty coverages. The Zurich Builders Risk Plan provides coverage for residential and commercial construction projects. Foremost’s specialties include mobile homes, off-road vehicles, motor homes, motorcycles, marine products and travel trailers.
Rockwood introduces Information Technology Consultants E&O
Rockwood Programs Inc., Wilmington, Delaware, introduced an Information Technology (IT) Consultants E&O Policy for small-to medium-sized risks. The policy covers failure to prevent unauthorized access to or tampering with data systems; inability to provide authorized access systems unless caused by mechanical, electrical or telecommunications failure; failure to prevent the introduction of a computer virus; and negligent acts, errors or omissions in rendering or failure to render professional IT services. The policy protects the owner and employees supervised by the owner. Liability limits are available up to $2 million and deductibles start as low as $2500. For more information, go to www.rockwoodinsurance.com or call (800) 330-7571.
MSO offers terrorisms forms and disclosure notices
MSO Inc. (Mutual Service Office), Glen Rock, New Jersey, announced that its terrorism forms and disclosure notices are now available to the public at www.msonet.com. MSO has filed exclusions for certified and noncertified terrorism loss, as well as forms to provide coverage for certified and non-certified terrorism loss, as well as forms to provide coverage for certified terrorism loss.
GE combines IRI and GAP Services
GE Commercial Insurance is combining two of its businesses, Industrial Risk Insurers (IRI) and Global Asset Protection Services (GAP Services) into one company. The integration will enable IRI to provide increased insurance capacity; unbundled loss prevention services or a combination of both. GAP Services will continue to service customers looking for independent property risk management solutions.
AIG $3.5 billion shortfall has analysts concerned about other insurers
AIG’s announcement that it would pay $3.5 billion more than expected to settle old claims has analysts concerned that other insurers may be in the same boat. Some analysts are pointing to the fact that AIG was considered to be one of the more conservative underwriters and even admitted to rejecting some $2 billion in business because it was underpriced. Other insurers took this business, they note. There are even some who are pointing to the fact that the now defunct Reliance Insurance Company was a direct competitor for much of AIG’s business and won much of that business through aggressive price competition.
Copyright Rough Notes Co., Inc. Mar 2003
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