CareSurance CAT : Innovative excess insurance for US long term care homes
Demonstrating continued innovation in the CareSurance suite of products for US long term care (LTC) facilities, CFC has recently announced the launch of CareSurance CAT, a brand new excess liability product for skilled, assisted and independent living facilities.
Recognising that many homes are keen to protect against catastrophe scenarios, such as liability arising from a fire, tornado, or single source abuse, CFC has developed a specific excess liability product that can sit above your client's existing PL / GL policy or sit standalone for those who have chosen to self-insure.
Unlike traditional excess policies, CareSurance CAT requires at least five residents to be affected by the event triggering the policy, which itself must be identifiable in a single time and place. Consequently only true catastrophe risks will be covered under the policy, allowing us to price the product more competitively.
For limits of up to $5m in excess of $1m our premiums will be as low as 17% of the primary layer. With traditional London excess markets charging as much as an 80% additional premium and local US markets in the region of 40%, this product offers an exceptionally competitive way to purchase catastrophe cover.
Read more in the official press release

IT Security Consultants: Professional indemnity insurance becomes mandatory
Selling professional indemnity insurance to technology professionals has long been held back due to a lack of regulatory or compulsory requirements for insurance in the sector. However, this is steadily beginning to change, and nowhere is this more evident than in the world of IT security consultancy.
After the well publicised breach of credit card data by a major US retailer, which resulted in the loss of over 90m individual records and a record fine for the company involved, the Payment Card Industry (PCI) established their own Security Standards Council. This body recently released the Data Security Standard (DSS) which all companies processing and / or storing credit card details must adhere to. What's more, this standard applies on a global basis.
In order to comply with the PCI DSS retailers are required to have an audit of their IT systems by a qualified security consultant or approved scanning vendor. Clearly this represents a huge market opportunity for anyone operating in this field. However, in order to be able to conduct PCI DSS audits, security consultants must first be approved by the PCI and admitted onto their consultancy register.
As well as being able to demonstrate all the requisite professional credentials, the PCI has set a strict insurance requirement for anyone wishing to conduct PCI DSS audits - a requirement that many companies are struggling to meet. In order to assist our brokers and clients, CFC have launched the first technology professional indemnity policy that is fully compliant with the PCI requirements.
Read more in the official press release Visit the PCI Security Standards Council website to learn more about the Standard

Technology PI Claim: Centrica vs. Accenture
Centrica, parent company of British Gas, recently announced its intentions to sue Accenture for £182m in damages relating to the failed implementation of an integrated customer billing solution.
Like many complex IT projects, “Project Jupiter” was allegedly blighted by problems since it commenced in early 2002. Software bugs and design flaws caused a virtual meltdown of the system which resulted in Centrica taking over the project in March 2006.
At its peak, Centrica alleges that they had to employ over 2,500 additional staff to deal with the customer service issues and manage the software problems. In 2006 alone it is estimated that British Gas lost over one million customers, with Centrica attributing the system failures as a major reason for the loss.
In February of this year Centrica formally issued notice of breach of contract and last week the company signalled their intention to seek recovery of damages through the courts. Accenture strongly deny the accusations and insist that British Gas directed the design, build and implementation of the system and were therefore responsible for any subsequent failures.
This case illustrates the potential for significant professional indemnity insurance claims in the IT industry, particularly from breach of contract cases. It demostrates that consultants are still exposed, even if their work is conducted under the direct supervision of their client and also highlights the extent of potential damages.
Read more in this Times online article

CFC Survey Results: Coverage over commission
In a recent survey conducted by CFC Underwriting of their UK broker base an overwhelming 83% of respondents stated that the breadth of coverage was the main motivator when placing cover. With only 14.5% citing the level of commission as a key consideration in placement, it would appear that treating customers fairly is a top priority for our brokers!
Read more in the official press release

Additional Capacity : £5m excess layer now available
CFC are pleased to announce that we can now offer a £5m excess layer on all our technology and miscellaneous professional indemnity products, as long as the insured is domiciled outside of the US and has less than 25% US exposure.

Keen to learn more.....?
If you would like to discuss any of the products or ideas mentioned in this newsletter then please contact your current CFC account manager, designated wholesale broker, or Graeme Newman on 0870 770 1002 (gnewman@cfcunderwriting.com)