The Chart Defender: Innovative E&O For Coverholders

By Mark Lann, EVP, Rockwood Programs

The CHART Exchange was established for the express purpose of expanding the U.S./ London marketplace through the identification and pursuit of new business opportunities. The organization has launched a number of new initiatives designed to help us achieve our goals since its founding in 2015.

We’ve hosted two separate national events (the first in Philadelphia PA, and the more recent one in Baltimore MD), developed a Market Finder Facility to bring new program ideas to Lloyd’s, and offer mentoring support for domestic agencies interested in doing business with the world’s oldest insurance brand.

We are not slowing down in 2017. As you read through the current edition of the CHART Magazine, you’ll see an article outlining the concept of CHART Markets. Another feature piece is dedicated to the organization’s third annual event, scheduled to take place October 8-10, 2017 at the Four Seasons Hotel in Baltimore MD.

There is one more new initiative being launched for the benefit of agencies doing business with London – the CHART Defender. This innovative Errors and Omissions (E&O) product was designed by Coverholders – entities possessing delegated underwriting authorities from Lloyd’s – to address the unique professional liability exposures they face.

Maybe not too surprisingly, coverage is being provided through Certain Underwriters at Lloyd’s London. They are rated “A” (Excellent) by A.M. Best.

The product has been called the CHART Defender to underscore the most important differentiating factor of this E&O offering: policyholders will know in advance who will serve as their advocate in the event of a loss. Our Claims Administrator is Wilson Elser, a nationally recognized law firm with approximately 800 attorneys in 31 offices across the United States and in London. This entity has exceptional experience in aggressively and professionally handling litigation and other proceedings so that our insureds get the most effective defense possible.

Agencies securing their E&O coverage through the CHART Defender initiative can also utilize Wilson Elser to assist them in establishing sound business practices within their firm. A proprietary risk mitigation hotline will be available to our policyholders. This facility will be staffed by legal experts who can provide assistance on potential problems before they become claims. This hotline feature is free to our insureds.

The CHART Defender E&O program will be “open for business” starting February 1, 2017. The product is being administered by Rockwood Brokerage – a division of Rockwood Programs. Firms interested in learning more should contact Mark Lann at 305-248-9495. Inquiries can also be submitted via e-mail at mark.lann@rockwoodinsurance.com.

Review some of the unique features of this new product offering:

• Defense costs in addition to the limits of liability

• Aggregate deductible

• Coverage for unintentional breach of underwriting authorities

• No Insolvency exclusion

• Broad definition of “Professional Services” to include Lloyd’s Coverholder activities, notary services, premium financing, and risk management/loss control activities.

• Automatic coverage for Independent Contractors

• Punitive damages (where allowable by law)

• 50% reduction of deductible if claim resolved through mediation

• Additional coverages included outside of the policy limit (separate sub-limits apply): defense costs for regulatory proceedings, litigation expense reimbursement, and subpoena expense reimbursement.

About the author:
An acknowledged expert in professional liability insurance, Mark Lann is the Executive Vice-President of Rockwood Programs, Inc., managing the operation and growth of the Rockwood Brokerage Division. From 1993 to 2014, Mark was the founder and president of Modern Insurance Consultants, Homestead, Florida, one of the largest volume MGAs handling agent E&O before merging the company into Rockwood in 2014.

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