Canadian Underwriter

Berkshire Hathaway Specialty Insurance launches fiduciary liability insurance in Canada

June 9, 2015   by Canadian Underwriter

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Boston-based Berkshire Hathaway Specialty Insurance (BHSI) has introduced Executive First Fiduciary Liability Insurance, a new policy “expressly designed to provide straightforward, up-to-date protection for Canadian sponsors of large pension and benefit plans and their directors, officers and employees.”

The new policy explicitly covers Canadian fines and penalties and protects executives when “their business decisions lead to litigation in connection with employee benefit plans.”

“Our Executive First Fiduciary Liability Insurance is built to deliver all the coverage our Canadian customers need in one clear, concise policy,” said Dan Fortin, head of executive & professional lines, U.S. and Canada, BHSI, in a statement on Monday. “The policy is thoughtfully designed to address the most current regulatory, litigation and pension and welfare issues facing large enterprises in Canada and is backed by our industry-leading underwriting and claims team, including Rhonda Prussack, Michael Densham, Carrie O’Neil and Todd Greeley.”

The new policy explicitly covers Canadian fines and penalties and features full settlor coverage (with no sublimit) to protect executives when their business decisions lead to litigation in connection with employee benefit plans, the statement said. “Its flexible defence agreement gives policyholders control over their own defence (with defence costs advanced), while enabling them to tender defence to BHSI if they prefer.”

Up to $25 million or more in capacity is available (up to $100 million if required), BHSI reported. The new fiduciary liability policy is part of Executive First, BHSI’s suite of executive liability insurance products “designed to provide clear, current and customizable coverage for commercial and financial firms, including those with the most complex risk-transfer needs,” the statement noted.

Related: Berkshire Hathaway Specialty Insurance expands into Canada

Densham, head of executive and professional lines, Canada, BHSI, said in the statement that the new policy “marks an important expansion of our primary executive lines in Canada. As we extend our capabilities beyond our Directors & Officers Liability and Side A DIC coverages, we underscore our commitment to providing sound and simple protection for the complex exposures of our Canadian customers.”

BHSI, which was formed in the second quarter of 2013, provides commercial property, casualty, healthcare professional liability, executive and professional lines, surety, travel, programs and homeowners insurance. In Canada, it “underwrites on the paper of National Liability & Fire Insurance Company,” a part of Berkshire Hathaway’s National Indemnity group of insurance companies.

In January, BHSI announced that it was expanding into the Canadian marketplace. “We currently are licensed to conduct business in Canada and we have secured office space in Toronto,” a BHSI spokesperson told Canadian Underwriter at the time. On Jan. 28, the firm said that it had appointed Scott Miller, Darryl DeSouza and Densham to lead its property, casualty and executive and professional lines operations respectively.