Private Company Management Liability – Rates Up (or Down) Depending On the Carrier

This year’s Private Company Management Liability Insurance Market Survey found a market that would like higher rates, but is struggling to get them.  Some carriers report rising rates, while others report falling rates.  In both cases, the range is small except in California, which continues to be troubled by its EPLI and, to a lesser extent, D&O, loss experience.

We found that more carriers are offering the insured the option of even more lines of coverage that can be included, with a particular emphasis on Cyber coverages (not surprisingly) and Unauthorized Electronic Funds Transfer (thank goodness).  Intellectual Property coverage, especially for patent infringement allegations, was clarified by many carriers at our request.

We are increasingly concerned that insurers are excluding coverage for any claim that arises out of a cyber security breach and so we have asked the carriers whether they include such exclusions in their standard MLI product.  Responses are in the tables.

27 carriers are included in this year’s survey.  We added Aspen, Hanover, and specialist Franchise Perils as sources of MLI coverages.  Fireman’s Fund is now listed as Allianz.

Estimating the total premium volume is difficult, but we asked MarketStance for their insight into the market’s potential.  They responded with enticing information about the size and makeup of the marketplace of private companies in the U.S., reminding us how much potential is yet untapped.  You can find their estimates as well as the summary version of our Report at www.betterley.com.

The entire 62-page Report including specific information about the carriers, products, capacity, and market focus is here.

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