Middle Market
Policy Highlights

Private Choice Encore (PE 00H012 00 0502) contains some of the most sought after coverage features in the industry. Highlights include:

• Flexibility to elect between two, three or four coverage parts.
• Flexibility to purchase a separate limit for each coverage part or a single aggregate limit for all coverage parts.
• Flexibility to select amount of limit and retention for each coverage part.
  
  Groundbreaking Claims Management Provisions:
• Optional defense costs outside the limit for all coverage parts (50% of limit) or
• No "Hammer Clause" for D&O, EPL and Fiduciary coverage parts.
  
  More Key Features:
• Subsidiary coverage, subject to a 25% acquisition threshold.
• Worldwide coverage.
• No mandatory arbitration provision.
• Coverage for controlled joint ventures.
• Punitive and exemplary damages coverage (with "most favorable venue" provision).
  
  D&O Coverage
• Derivative demand investigation costs coverage ($250,000 sublimit).
• $500,000 Side A reinstated limit for claims against managers (other than original claim), at no additional premium.
• Guaranteed IPO coverage quote.
• Optional entity coverage.
• Extended definition of claim.
• Generous carve-outs to the insured vs. insured exclusion.
• Final adjudication standard preserved in the fraud exclusion.
• Private placements of securities coverage with no reporting requirements.
• Waiver of the deductible for any claim that is finally resolved with no liability to the insureds.
  
  Employment Practices Coverage
  Definition of Employment Practices Wrongful Act includes:
• Wrongful dismissal, discharge or termination.
• Wrongful failure or refusal to hire or promote.
• Sexual or other workplace harassment.
• Employment discrimination.
• Invasion of privacy.
• Employment-related defamation.
• Retaliation.
  
  Definition of Employee Includes:
• Temporary, seasonal or part-time.
• Leased or loaned employees.
• Volunteers.
  
  First party Employment Practices Liability coverage for Independent Contractors as Insured Persons (to the extent the Company provides indemnification to such Independent Contractors)
  
  More Key Employment Practices Liability Coverage Part Features:
• Optional third-party discrimination coverage.
• Audits by the Office of Federal Contract Compliance Programs included in the definition of claim.
• No exclusion for fraudulent or criminal act or omission or willful violation of law.
• Waiver of the deductible for any class action that is finally resolved with no liability to the insureds.
  
  Fiduciary Coverage
• Extended definition of claim (including fact-finding investigations by the Department of Labor or the Pension Benefit Guaranty Corporation).
• Coverage for certain percentages of ERISA section 502 (i) and 502 (l) penalties.
• Waiver of the deductible for any claim that is finally resolved with no liability to the insureds.
• Definition of "Insured Plan" includes:
  • Government-mandated programs (except workers' compensation).
  • Employee welfare and pension benefit plans sponsored by the company (ESOP coverage available by endorsement).
  • Non-ERISA plans sponsored by the company (including excess benefit plans).
• IRS voluntary settlement program coverage ($100,000 sublimit).
  
  Miscellaneous E&O Coverage
• Extended definition of claim (including written demands for monetary or non-monetary relief; civil proceedings; and written requests to toll or waive a statute of limitations).
• Professional services defined in schedule.