According to Mr. Taffae, over the past two years the real estate market has been going through a renaissance. While at one time the market was very silo oriented, with one company selling houses, another handling title searches, another performing inspections and so forth, companies have started bringing all those functions under one roof. By doing this they maximize value and control the process. With the insurance market being broken into silos, an organization would find itself working with five or six different policies to ensure that everything was properly covered. This is expensive, inefficient, and did not provide the best coverage.

This is where Executive Perils comes in. They have developed RE360Ⓡ, a form that offers all necessary coverages under one policy, where a retailer only has to deal with one underwriter, and there is only one company adjusting claims. The policy provides coverage part options for D&O, E&O, employment practices, fiduciary liability and cyber liability. Cyber coverage is offered up to $100,000. The policy has a single basket aggregate with an A+15 company, and the insured can check off desired coverages (over 10 different E&Os). For example, instead of buying six different policies for $1 million each, an insured can have a single policy with a $1 or $2 million aggregate limit, with separate limits and retentions for each of the coverage parts. This offers a cost-saving option to the insured, as the odds of having a claim under all policies at once are extremely slim. All coverages are under one carrier, ARCH, and one adjuster will handle all aspects of the loss.

The policy has several advantages by adding traditionally unavailable coverages or providing higher limits. As an example, often open house coverage is limited to $50,000; RE360Ⓡ provides up to $500,000. While a loss that large is not likely, it's better to have coverage and not need it, than need it and not have it. The E&O coverage is menu driven, with the insured choosing coverage he needs. The insured can select coverage for property managers, developers, construction managers, leasing agents, escrow, title agents, appraisers, and auctioneers. Under the D&O coverage, there is no prior acts exclusion. There is no hammer clause on the EPL, D&O, Fiduciary, only E&O and Cyber which is a soft 80/20. There are also no BI or PD exclusions for professional services.. To illustrate, if the property manager hoses down the sidewalk in front of the building and someone falls, sustains injuries, and sues both the building owner and the property manager (insured) , this policy provides coverage for the property manager for errors arising out of the bodily injury. Likewise, if the building owner (insured) is the one who hoses down the sidewalk, he is covered as well.

The policy has an early settlement provision; if the claim is settled early, the retention is reduced by fifty percent. Executive Perils owns the RE360Ⓡ product and has a strategic alliance with ARCH, who is underwriting and servicing the policies. EPerils reviews all applications and submits them to ARCH, who accepts or declines the risk. This is brand new coverage, roughly four to six weeks on the market. For further information on the program or for any questions, contact Peter R. Taffae, MLIS [email protected] Phone: (310) 444-9333 x100 Fax: (310) 444-9355, Executive Perils Inc., 800 Wilshire Blvd, Suite 1525, Los Angeles, CA 90017.