29
Jun
2011
Hardening Management Liability Marketplace
photo credit: wrestlingentropy
In the past 12 months, several management liability insurance carriers have changed their underwriting guidelines for privately held California insureds.
Some of the changes include:
- Increased rates
- Increase retentions
- Reductions in coverage
- Reductions in total limits offered
- Reductions or removal of wage and hour defense cost sub limits
- Non-renewal of certain insureds based on industry
In recent years, there has been a surplus of capacity from Management Liability Insurance carriers to write accounts at attractive rates and terms. The marketplace appears to be reaching a point where this capacity will no longer be utilized to offer terms we have been accustomed to seeing.
Why is this happening?
- Poor economic conditions
- EPL claims expenses rising
- Wage and Hour claims being far more prevalent than anticipated
- Increase in D&O claims
What should I expect?
- Increases in retentions and premiums
- Defense costs for wage and hour claims will be harder to get
- Non-renewals by some carriers based on class of business
The bottom-line is that the California MLI marketplace is changing and there are many advantages in being prepared. Please call 415-257-2100 or click here to visit our website.
Source:
Leftcourt, Paul. Hardening Management Liability Marketplace for California Clients. San Francisco: Socius, Mar. 2011. PDF.
