what is side a coverage? - aon · aon risk solutions | specialty | professional services for...
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Aon Risk Solutions | Specialty | Professional Services
For Professional Service Firms
“Side A” Coverage
Overview
A firm’s financial impairment or other inability to meet or accept indemnity obligations can result in personal liability to partners or other senior management of the firm. When other insurance policies do not afford coverage and the firm cannot indemnify, Management Liability “Side A” coverage may be the only insurance a lawyer or senior executive has to protect personal assets. Aon is the leading broker to professional service firms, as well as the world’s largest professional liability insurance broker. Aon Risk Solutions’ Professional Services practice focuses on the needs of lawyers, solicitors and notaries, accountants, consultants, actuaries, and architects, engineers and other design professionals. We are also the global leader in providing Side A coverage to professional partnerships and corporations.
What is Side A Coverage?
y Side A-only policies cover an individual insured’s non-indemnified and/or non-indemnifiable liability, but do not cover any liability of the firm itself. Typical insured persons are members of an executive or management committee and senior officers at the firm.
y Side A exclusions are usually limited to bodily injury, prior or pending litigation, finally adjudicated fraud or illegal remuneration, and sometimes insured versus insured claims (with exceptions for defense costs).
y Primary Side A coverage is triggered if the firm becomes financially insolvent, cannot otherwise indemnify, or refuses to indemnify an insured and there is no underlying insurance to cover the claim.
y Excess Side A plus Differences in Conditions (DIC) coverage applies in the following situations:
- Excess of the underlying Management Liability (ML) policy; or
- Drops down as primary in the event that (i) the coverage is broader than the coverage provided in the underlying ML policy, and the firm refuses to indemnify the insured person, or (ii) the underlying coverage does not cover the claim for any reason, and the firm refuses to indemnify the insured person.
y Both primary and excess Side A forms do not have retentions.
Aon Risk Solutions’ Professional Services practice is the global
leader in providing Side A coverage
to professional partnerships and
corporations.
As at March 2013 Aon Risk Solutions | Specialty | Professional Services
Why Professional Services?
We leverage our unique and extensive knowledge of ML issues relevant to professional service firms, our market access and expertise, and our integrated global platform, to benefit our clients.
y We have over 75 years of experience providing insurance to professional service firms and introduced partnership-specific ML insurance in 1999.
y We create innovative ML insurance solutions tailored to meet the specific needs of our individual clients, rather than accepting “off-the-shelf” products offered by insurance markets.
y We have dedicated claims advocacy counsel and claims collection specialists with over 25 years of claims-handling experience.
y We work with ML insurers to maximize the loss control services offered by insurers to help our clients mitigate their exposure to management-related suits.
y We collect superior proprietary risk information that allows us to provide our clients with industry-leading benchmarking data.
y We maintain active relationships with insurance company senior management, product line managers, line underwriters, and claims professionals to ensure appropriate points of access for our clients and, most importantly, responsive claims resolution.
y Our global platform allows us to reach insurance markets and new sources of capital anywhere in the world on behalf of our clients.
Aon Contacts
For specific information on Side A coverage,
please contact:
Jonathan [email protected]
+1.212.441.1722
For more information on the Professional Services practice, please contact:
Gerard R. Guterl, [email protected]
+1.212.441.1715
Barry [email protected]
+1.514.982.5110
+1.312.381.4192
David [email protected]
+44 (0)20.7086.4306
Bruce G. [email protected]
+1.203.655.1639
www.aon.com/ professional-services