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We are pleased to announce that underwriters at Lloyd's of London have agreed to several new Fiduciary Professional Liability ("FPL") insurance policy enhancements. Since first introducing the PFAC-endorsed FPL program we at Dominion have worked continuously to improve and expand the scope of coverage afforded PFAC members. The last round of changes before these most current ones occurred in March of this year. These very latest enhancements underscore Lloyd's long-term commitment to the FPL program and the members it serves. Consider the following highlights:
- Consent to Settle Clause. The policy already provides that no claim will be settled without the assured's consent. Because underwriters are committed to working with policyholders at claim time in a collaborative manner, the following helpful language has been added to the consent to settle clause located in Section I.B.4 of the policy:
Without waiving the foregoing, in order to enhance the likelihood of resolving Claims covered by this Insurance in a mutually agreeable manner to both Underwriters and the Assured, Underwriters agree to: (1) seek the Assured's views regarding any potential settlement or compromise recommended by Underwriters and acceptable to the claimant; and (2) substantively respond to any such views, explaining Underwriters' position and the reason(s) therefor.
- New Provision for the Defense of Disciplinary Proceedings. With California fiduciaries now operating under state licensing regulations and thus subject to discipline for alleged misconduct, underwriters have agreed to add coverge of up to $10,000 for the defense of disciplinary proceedings.
- New Provision for Lost Earnings. When a fiduciary is required to miss time out of the office to appear at a hearing, arbitration or trial of a claim, that assured loses valuable billable hours. In recognition of this, underwriters have agreed to a new policy provision which allows for reimbursement of such lost earnings at a rate of $250 per day, capped at $5,000 for the policy period.
- Coverage for Volunteers and Pro Bono Cases. In response to requests by PFAC members, underwriters have now included in the policy form express language clarifying and confirming that coverage applies to volunteers working for the Named Assured as well as to all work done on a pro bono basis.
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