The Hanover Revamps Coverage For Non-Profit Groups

The Hanover Insurance Group is beefing up one of its main product offerings targeted to nonprofit organizations, with more sophisticated cyber security protection and other added offerings.

Helen Savaiano, president of management liability at The Hanover, said that the idea behind the product update was to treat non-profit organizations like for-profit businesses in terms of addressing possible exposures.

“Not-for-profit organizations, regardless of size, can face the same major exposures as for-profit businesses, Savaiano said in prepared remarks. “With operating margins and finances already stretched thin, the financial impact of a liability could be potentially devastating to these organizations. Our enhanced management liability offering … [enables] non profit organizations [to] have comprehensive protection for both their resources and their reputations.”

Specifically, execs unveiled an updated version of the insurer’s Nonprofit Management Advantage Program, within its management liability program. In total, the program offers specialized coverages designed for nonprofit organizations.

Among the added elements:

• Cyber security and privacy – flexible protection that includes three new first party cyber coverages and six new third party cyber coverages.
• An expanded definition of the terms “claim” and “loss,” plus “insured versus insured exclusion” updates for its director’s and officers liability.
• Improved employment practices liability coverage, with third party coverage now automatically included, defense expense coverage for breach of written contracts and independent contractors treated as employees.
• Improvements under fiduciary liability, such as variable sub-limits available for compliance resolution, 502(c) and HIPPA civil penalties, an expanded definition of the term “claim” and priority of payments language improvements.
• There’s a new crime coverage base form that incorporates premises coverage, coverages for employees on military service and other enhanced coverages.
• Kidnap, ransom and extortion – there are new insuring agreements added under this, including political repatriation, hostage crisis costs and security consulting services.
• The Hanover, a holding company for several property/casualty insurance companies based in Worcester Mass., distributes its coverage exclusively through independent insurance agents.

Source: The Hanover Insurance Group