CFC bolsters product suites with management liability cover

CFC Underwriting, has included comprehensive management liability as a supporting cover across all its product suites including Biosurance, Esurance and ProSurance ranges.

CFC pointed out this was the first time it had offered management liability cover and in the current climate, had recognised that this was becoming an increasingly significant exposure for the small and medium sized enterprises (SME) which it specialises in.

Business development director, Graeme Newman, commented: "Director's and Officer's (D&O) is in the spotlight right now and while much of the current litigation is focused on financial institutions, it is likely that we're going to see wider fallout over the coming months. While the exposures for SMEs haven't necessarily changed, the sticky financial climate means that management liability is climbing up their priority ladder. Bosses who've always thought it'll never happen to me have seen others in the firing line and are feeling increasingly vulnerable."

Mr Newman warned that some industry sectors were finding it harder than others to get quality cover at an affordable price. He explained: "In the life sciences industry - particularly firms discovering and developing new drugs - or those involved in early stage technology development are under-served by insurers in the current market. Few are willing to write management liability for this type of business. Our D&O has been designed to complement our existing product suites which include specific cover to meet the specialist needs and exposures of individual industry sectors such as life sciences."

CFC said it offered a modular policy structure meaning that management was an extension of its professional indemnity and general liability offering. It added that cover could be tailored to the specific requirements of the business, and clients were reassured that there were no exposures left by gaps between them. Brokers exclusively provide this cover.

Mr Newman continued: "We pride ourselves on properly understanding clients' businesses, so our broker partners can be confident that they are providing the most appropriate cover with CFC policies. The addition of D&O means that they can now access a complete package of insurance for their clients."