Over a year ago, the world was faced with an unprecedented wave of events that tested the resilience of many corporations. Among these events were the ongoing COVID-19 pandemic and racially charged protests linked to allegations of discrimination. The changing business landscape has further emphasized the need for liability coverage to evolve with emerging exposures. With this in mind, CNA’s new modular Management Liability, Technology & Professional liability, Media, and Cyber form was launched in December 2020, with the aim of delivering a modern approach to addressing evolving exposures. While the core coverages remain, the new product has been enhanced with several new elements.
Epack 3 is streamlined and clearly delineates coverage grants from coverage exclusions. Definitions and exclusions are compartmentalized within coverage parts and exclusions are drafted in a table of contents format, which provides for less of a need to toggle back and forth between the General Terms and Conditions and the coverage parts. Epack 3 is easy to understand because it is written in clear and concise language.
The following is a breakdown of what corporations can expect from the new offering as well some key improvements designed to ensure that the new product evolves with changing exposures:
The Directors & Officers (D&O) coverage part serves to mitigate risk for directors and officers and their companies, helping safeguard against claims by competitors, shareholders and regulators; while Directors & Officers (D&O) Non-Profit is a tailored directors and officers liability solution to mitigate risks specific to Non-Profit organizations. Some of the enhancements made to this coverage part include:
- Expanded definition of Executive which includes shadow/de facto director, advisory board member, in-house general counsel and risk manager
- Compartmentalized structure of the coverage part allows for easy identification of key sub-limits such as Demand Response Costs and Crisis Event Expenses by having them clearly outlined in the coverage part declaration
- Non-Profit D&O coverage part includes Excess Benefit Transaction Taxes coverage as well as Publisher Injury coverage for allegations of libel, slander, defamation, plagiarism, misappropriation of ideas, infringement of copyright, title, slogan, logo, trademark, trade dress, service mark, or service name
Employment Practices Liability (EPL) insurance to address issues arising from internal practices and procedures, such as discrimination, harassment and wrongful retaliation. Some of the enhancements made to this coverage part include:
- Non-duty to defend option available for select customers
- Expanded definition of Executive which includes general counsel, risk manager and director of human resources
- Coverage for cost of expert consultants and witnesses
- Coverage for diversity/sensitivity training costs (no sublimit)
- Confirmed coverage for Wrongful Act via social media or internet websites
- H.R. Help Line available for employment related matters
The Crime coverage part helps address losses stemming from employee dishonesty, forgery, robbery or other specified criminal acts. Some of the enhancements that are now offered in this coverage part include:
- Loss discovered coverage is now the standard offering
- Broadened definition of Employee which includes students, interns, volunteers, former employee retained as consultants, employee on leave and Independent Contractors
- There is a broadened definition of Client. While Epack Extra provided coverage for third parties for whom the Insured Entity provides specified professional services for a fee, Epack 3 provides client coverage for any customer of the Insured that they provide goods or for whom they perform services while under a written contract for a fee.
- Policy language ensures that ERISA bonding requirements, as required in the US, are met
Epack 3’s Fiduciary Liability coverage part addresses exposures involving fiduciary duties arising from the administration and management of employee benefit and pension plans. Some of the enhancements made to this coverage part include:
- A dedicated covered penalties section on the Declaration Page which includes sublimits for Section 502 (c), Pension Protection Act, Health Insurance Portability and Accountability Act (HIPAA), Section 4975, Patient Protection and Affordable Care Act (PPACA) as well as civil or administrative penalties imposed upon an insured under Canadian pension laws.
- Expanded definition of Claim including Internal Appeal
The Technology & Professional Liability Coverage part addresses issues arising from failure to perform professional services or failure to exercise reasonable care in the performance of professional services. Some of the enhancements made to this coverage part include:
- Definition of Insured Person includes full-time, part-time, seasonal, temporary and leased employees, as well as Independent Contractors
- Additional Insured status is granted where required by contract
Media Liability insurance is available to address liability arising from content distributed to the public or, from the creation, acquisition or gathering of such content. Some of the enhancements made to this coverage part include:
- A Subpoena assistance coverage sublimit
- Settlement Retention and Risk Mitigation Credits
Cyber Liability insurance is available to address liability arising out of an Insured’s obligation to protect private or proprietary third party information as well as first party losses for extortion, business interruption, network failure, data and hardware restoration, and reputational harm. Some of the enhancements made to this coverage part include:
- Cyber-crime sublimits are now available in Epack 3
- Cyber prep risk control offering is now available
For businesses and non-profits of any size, Epack 3 is a modernized solution that can be tailored to address your complex risks.
Learn more about Epack 3 or contact your local underwriter to discuss how Epack 3 could benefit your clients.