Marsh introduces excess capacity facilityPosted On: Jun. 22, 2016 12:00 AM CST
Marsh L.L.C. has launched an excess facility for all classes of management liability insurance.
The facility, FL ECHO, is underwritten by a panel of carriers at Lloyd’s of London and in the wider London insurance market and provides up to $105 million of dedicated ring-fenced excess capacity for U.S.-based buyers and up to $170 million of excess capacity for non-U.S.-based buyers.
The facility covers directors and officers, commercial crime, employment practices liability, public offering of securities insurance, pension trustee liability, fiduciary duty and D&O for financial institutions coverage.
The excess coverage is designed to respond consistently with the terms and conditions of the primary policy, said Beth Thurston, head of management liability and financial lines in the financial and professional practice at Marsh in London.
Other benefits of the coverage include full reinstatement of the policy limit after a loss, said Ms. Thurston.
The facility will allow buyers to access the London market to a greater extent, said Ms. Thurston.
She said that the fact that the capacity is ringfenced means that buyers are able to access other insurers for additional capacity should they wish.
No industry sectors or jurisdictions are excluded from the coverage, she said.
The policy will automatically follow most mid-term amendments to the primary policy, said Ms. Thurston.
Buyers need only notify the lead carrier of any claim, Ms. Thurston said, and under the Lloyd’s claims scheme, in the case of complex claims, the lead and second carrier on the lineslip will handle the claim on behalf of all other participating markets, she said.