Markel Programs and ProSurance Group, Inc. to Offer New Primary and Excess Limits for Commercial Fidelity Insurance Program

November 3, 2010

FOR IMMEDIATE RELEASE

Markel Programs and ProSurance Group, Inc. to Offer New Primary and Excess Limits for Commercial Fidelity Insurance Program

Richmond, VA, November 1, 2010 – Markel Programs announced today an increase in capacity for their monoline commercial Fidelity insurance program through ProSurance Group, Inc., their general agency partner. ProSurance Group will now have capacity to write limits up to $5,000,000 on a primary and excess basis. Commercial Crime coverage is currently available countrywide on an open-brokerage basis. The minimum premium is $2,500.

“We are excited about the success of our partnership with ProSurance. The ability to write larger limits demonstrates our commitment to this general agency and the Fidelity program,” stated Rick Wiseley, Managing Director of Markel Programs. “Prospects for positive growth in 2011 and beyond are tremendous,” he continued.

Dorothy Kent, Senior Vice President of ProSurance Group, commented, “We are very pleased about the program development and are looking forward to providing higher limits of coverage to better serve the broker community and a broader spectrum of clients and industries.”

Markel Programs and ProSurance Group’s Crime program is accessible to a wide variety of industries. Target commercial classes include retail businesses, ATM companies, manufacturers, casinos, and difficult-to-place risks. The coverage protects against fidelity and forgery, money and securities, robbery, safe burglary, computer fraud, money orders and counterfeit currency, theft of client property, funds transfer fraud, and agents.

ABOUT MARKEL PROGRAMS
A division of Markel Corporation, Markel Programs develops partnerships with managing general agents to offer single-source, admitted and non-admitted programs for a specific class or line of business. Markel Corporation markets and underwrites specialty insurance products and programs to a variety of niche markets. In each of these markets, the Company seeks to provide quality products and excellent customer service so that it can be a market leader. The financial goals of the Company are to earn consistent underwriting profits and superior investment returns to build shareholder value. To learn more about Markel Programs, visit markelprograms.com.

ABOUT PROSURANCE GROUP, INC.
ProSurance Group was founded in the 1990s as a managing general agency for professional liability. It specializes in underwriting and marketing the more difficult lines of insurance. The Fidelity Division is headed by Dorothy Kent, an experienced senior fidelity underwriter. ProSurance Group markets through independent sub-producers and, in some cases, directly to its insureds. To learn more about ProSurance Group, visit prosurancegroup.com.

Case Study – Investment Advisor

June 13, 2010

DO YOU CARRY ENOUGH PROFESSIONAL LIABILITY INSURANCE?

As an Investment Adviser, you have been entrusted with the wealth of individuals and institutions. Clients count on you to provide personalized, unbiased advice and make informed investment decisions based on current economic and market conditions. Since you shoulder such a heavy responsibility, your professional liability protection must be exceptional.

ProSurance Group understands your insurance needs, and will provide the personalized service you deserve. We will discuss with your insurance agent or you directly what type of coverage you require and how to best design a policy that offers you maximum protection at a reasonable cost. We also offer the ERISA and surety bonds you may need.

“He was sued for malpractice as a result of the decrease in asset value, as measured in US dollars.”

Even the most responsible, skilled and experienced Investment Adviser can innocently become involved in a professional liability claim.

CONSIDER THIS REAL LIFE EXAMPLE:

An Investment Adviser invested institutional pension assets abroad. He liquidated a position and converted from Euros to US dollars. Although he correctly and promptly filed all paperwork, the liquidation was not executed in a timely manner, and in the interim the US dollar appreciated significantly against the Euro.

He was sued for malpractice as a result of the decrease in asset value, as measured in US dollars. After months in court and expensive legal fees, he paid a $2,000,000 award and his professional reputation suffered.

Case Study – Registered Representative

June 9, 2010

DO YOU CARRY ENOUGH PROFESSIONAL LIABILITY INSURANCE?

As a Registered Representative, you recommend, buy and sell securities for your clients. They look to you to be their expert guide, but may not always clearly listen to your warnings of the risks of volatility of certain investments. Your clients might not even understand that there is no absolute guarantee of making a profit with any investment. That is why you need professional liability insurance to protect you in your fast paced world.

ProSurance Group understands your insurance needs, and will provide the personalized service you deserve. We will discuss with your insurance agent or you directly what type of coverage you require and how to best design a policy that offers you maximum protection at a reasonable cost. If you also sell life insurance and annuities, or provide financial planning or investment advisory services, we can also insure these activities.

“The registered representative was ordered to pay $2 million in restitution and court fees”

Even the most careful and experienced Registered Representative can innocently become involved in a professional liability claim.

CONSIDER THIS REAL LIFE EXAMPLE:

A Registered Representative had a successful relationship with his client for several years. He had recommended a growth and income strategy for his client’s funds that had produced moderate, if unspectactular returns. However, his client realized that his portfolio was lagging the market and was interested in making more money. At the client’s request, he began recommending purchasing more aggressive stocks on margin.

As the bubble in high tech stocks burst, his cilents lost all of his invested funds. Even though he requested and authorized a change in investment strategy, the client sued his registered representative for recommending unsuitable securities and for failing to disclose the risks, potential volatility, and effect of margin. The registered representative was ordered to pay $2 million in restitution and court fees.

Case Study – Broker Dealer

June 8, 2010

DO YOU CARRY ENOUGH PROFESSIONAL LIABILITY INSURANCE?

As a Broker-Dealer, professional liability coverage should be a necessity, both for you and your Registred Representatives. Your registered representatives deal directly with your clients as your agent. If they make a mistake, or are even accused of making one, you can be held responsible.

Many of your registered representatives will also have their own clients, as life insurance agents, financial planners, and investment advisors. Even if these clients are not your clients, you are likely to be sued for failure to adequately supervise your registered representatives. If they are not insured, you may be held responsible, simply because you have the ability to compensate the injured claimants. Therefore, it is important that you and your registered representatives have comprehensive professional liability and fidelity coverage.

ProSurance Group understands your insurance needs. We can insure you, your registered representatives, and your affiliated life insurance agencies and registered investment advisors. We will discuss with your insurance agent or with you directly what type of coverage you and your registered representatives require and how to best design a policy that offers you maximum protection at a reasonable cost.

“The registered representative and his broker-dealer were required to give the investor all of this money back.”

Even a Broker-Dealer with the most attentive, comprehensive compliance and supervisory system can innocently become involved in a professional liability claim.

CONSIDER THIS REAL LIFE EXAMPLE:

Over the course of several years, a Registered Representative invested stocks and bonds for a wealthy buisnessman. The businessman became interested in diversifying his portfolio into real estate, so the representative suggested a suitable property. He informed the businessman that he had not performed the necessary due diligence on the property, but had successfully dealt with the general partner on previous projects. After personally visiting the property and interviewing the firm’s general partner, the businessman invested $300,000. Over the next few years, the project ultimately failed and this man lost all of his investment.

The businessman sued the broker-dealer for failing to supervise its registered representative and the registered representative for recommending unsuitable investments, for which he had failed to provide complete disclosure and did not perform the necessary due diligence. After years of discovery and four weeks of trial, the jury concluded that the Registered Representative and his broker-dealer were required to give the investor all of this money back, with interest, and pay his legal fees. The total cost was more than $1,300,000 on a $300,000 investment.

Case Study – Life Insurance Agent

June 7, 2010

DO YOU CARRY ENOUGH PROFESSIONAL LIABILITY INSURANCE?

As a Life Insurance Agent, your clients trust you to guide them through their survivor, retirement, and estate planning needs. If your client died today, would his family be financially prepared to live without him? They will look to you for assurance. Due to the sensitive nature surrounding your services, claims can happen. Whether they have merit or not, they can cost you substantial amounts of time and money, just to defend yourself and your agency. Since you shoulder such heavy responsibility, your professional liability insurance must be exceptionally strong.

ProSurance Group understands your insurance needs, and will provide the personalized service you deserve. We will discuss with your insurance agent or you directly what type of coverage you require and how to best design a policy that offers you maximum protection at a reasonable cost. If you also sell and service property/casualty insurance or securities, we can expand coverage to these areas.

“The insurance company intervened to make the client whole, then turned to the agent to provide the funds for the unintentional error.”

Even the most careful, skilled and experienced Life Insurance Agent can innocently become involved in a professional liability claim.

CONSIDER THIS REAL LIFE EXAMPLE

An experienced Life Insurance Agent neglected to update a client’s life insurance policy to reflect the impact of an obscure update in income tax laws.

This oversight caused a beneficiary to pay more income taxes. The insurance company intervened to make the client whole, they turned to the agent to provide the funds for the unintentional error.

Case Study – Financial Planner

June 6, 2010

DO YOU CARRY ENOUGH PROFESSIONAL LIABILITY INSURANCE?

As a Financial Planner, you assist your clients in numerous ways – by preparing comprehensive plans, by developing estate and retirement strategies, by offering tax, investment, and insurance advice. You may even prepare tax returns or perform other accounting services for your clients. They look to you to be their expert guide, and may not always clearly hear your admonitions regarding the risks of certain strategies or investments. They may not even understand that there is no absolute guarantee than they will meet their financial objectives.

Prosurance Group understands your insurance needs, and will provide the personalized service you deserve. We will discuss with your insurance agent or you directly what type of coverage you require and how to best design a policy that offers you maximum protection at a reasonable cost. If you also offer tax preparation or accounting services or administer pension or benefit plans, we can offer the professional liability, fiduciary and trustee coverages you may also need.

“The unhappy investors obtained a judgment against her and it remained in the court records for 10 years.”

Even the most careful and experienced Financial Planner can innocently become involved in a professional liability claim.

CONSIDER THIS REAL LIFE EXAMPLE:

A commissioned broker and registered investment adviser converted her practice to fee-only financial planning. She had purchased E&O insurance as a registered representative through her former broker-dealer but did not carry any for her investment advisory firm. She had invested some of her financial planning client’s assets in limited partnerships that later failed.

Three of her former clients filed arbitration claims with the NASD and alleged ethics violations with the CFP Board of Standards. The financial planner thought she was covered under her former broker-dealer policy, but in fact she had no coverage. This policy only covered her business through the broker-dealer. Her independent financial planning and investment advisory services through her own firm were not insured.

The unhappy investors obtained a judgment against her and it remained in the court records for 10 years. Without insurance the financial planner was unable to fulfill her financial obligations and the investors filed a lien against the planner’s home and other assets to have her wages and financial planning fees garnished.

Why ProSurance Group Inc.

Prosurance Group, Inc. is an organization experienced in protecting Financial Service Professionals.


We'll help you through:
  • Innovative policy terms
  • Flexible underwriting
  • Competitive financing
  • Sound financial backing
  • Responsive claims service
Why Do You Need Professional Liability Insurance?
Professional Liability Insurance is your most critical coverage. It protects you against loss from negligent acts of omission or commission while serving your clients. The coverage can make the difference between the survival or failure of your business when faced with today's legal threats.