PRODUCT: Directors and officers liability for nonprofit organizations

COMPANY: Navigators (admitted)

BEST RATING: A

AVAILABILITY: Directors and officers liability policies are underwritten by Navigators’ exclusive D&O program administrator Victor O. Schinnerer & Co.

FOCUS: Schinnerer, which has been delivering primary nonprofit D&O protection for 20 years, is in the process of taking steps to increase its market share in this class. First, Schinnerer expands its D&O underwriting appetite by serving nonprofit firms with revenues as much as $100 million. Previously, Schinnerer had focused on accounts with less than $5 million in revenues. Second, Schinnerer will soon begin offering excess. At press time, Schinnerer was hammering out excess underwriting particulars such as limits and attachment points. Third, later this year, Schinnerer plans to launch a second D&O program which will serve for-profit organizations, according to Steve Cohen, senior vice president of the management liability practice at Schinnerer. The program administrator is working on finalizing details such as the company supplying the paper, range of limits, etc.

UNDERWRITING: D&O policies contain three insuring agreements. The first insuring agreement covers non-indemnifiable loss for insured persons, the second provides protection for indemnifiable loss for insured persons and the third insuring clause covers a loss of the insured entity. The D&O definition of insured person can include board members, company officers, trustees, employees, volunteers and committee members. Some 90% of Schinnerer’s nonprofit D&O business involves packaging directors and officers liability with employment practices liability insurance (EPLI), but customers can also purchase D&O and EPLI monoline. In addition, producers can arrange three other coverages: fiduciary liability, crime and kidnap, ransom and extortion. Per-claim and annual aggregate limits can reach $10 million, with minimum retentions beginning at $2,500. Defense costs are usually inside policy limits, but can be outside policy limits for selected accounts. Punitive damages are covered where permitted by state law. Unlimited prior acts coverage is available on a case-by-case basis.

MINIMUM PREMIUM: Varies by risk and by program.

TARGET: Schinnerer maintains a broad underwriting appetite serving dozens of eligible classes, with the underwriting sweet spot including foundations; chambers of commerce; museums; trade groups and professional associations; and condominium and homeowner associations.

COVERAGE TERRITORY: All states.

CONTACT: Steve Cohen, senior vice president of the management liability practice; Victor O. Schinnerer & Co., Two Wisconsin Circle, Chevy Chase, MD 20815; 301-961-9851.

Ron Lent is an IA contributor.