CIMA and Human-Services Organizations

CIMA has customers in hundreds of classes of business. There also are a few kinds of business in which we specialize …

CIMA and Human-Services Organizations

For more than 40 years, CIMA has been developing and offering uniform, broadly written, competitively priced insurance programs for organizations engaged in the delivery of human services. Click here for details on the CIMA Human Services Protection Program.

Years ago, few insurance carriers were interested in writing coverage for such organizations. CIMA was one of the very few insurance brokers in the nation that addressed this unmet need. Our objective was to combine accurate underwriting with targeted loss-control efforts. As part of our efforts, we established our own Loss Control Department and Claims Department in the early Eighties. There, our customers' actual claims are tracked and measures are developed to help our customers address the causes of those claims.

Over the years, we have been able to help human-services organizations gain access to insurance coverage that is written for the real risks involved and is priced appropriately. As a result, a significant percentage of our customer base is now composed of these organizations, including those serving persons who have developmental disabilities.

Organizations with which we work include the Corporation For National and Community Service programs (Retired Senior Volunteer, Foster Grandparent and Senior Companion); social service nonprofits of every description; local governments; work-release and alternative sentencing programs; and many others.

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CIMA and The Association Community

CIMA serves more than 5,000 associations and other nonprofit entities nationwide, with programs ranging from property and casualty insurance to directors and officers and professional liability insurance.

As the first step in creating our CIMA Association Headquarters Protection Program, we studied our competition. We talked to insurance buyers about their current programs, needs and priorities. Then we developed the kind of program we would want if we were in those buyers' place.

In addition, we have our own risk management division, available to work with association customers to address their own unique concerns. We are proud of the difference those services make. Controlling losses is the key to controlling insurance costs in the long run.

Our services also can go beyond the insurance program covering an association's headquarters operation. From time to time, an association's members might have trouble obtaining a particular type of insurance at a reasonable cost. CIMA's history is bright with examples of how we have helped associations provide their members access to employment practices liability, professional liability, directors and officers liability, volunteer insurance and other coverages.

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CIMA and the Construction Industry

We have a separate bond department with expertise in the construction industry. Our bond experts have over 50 years combined experience in improving program limits, collateral requirements and rates. Our experience has enabled us to develop strong relationships with leading surety markets that offer additional experience and substantial capacity to support our customers' bonding needs.
Our long history with contractors means that we understand your operations and the inherent risks. By understanding the risk, we can help you control it, and control the costs of your overall risk management program.
Our real point of difference with our competitors is that we offer much more than insurance policies. We have a formal process through which we analyze your exposures to loss - those that are insured and those that are not - and design an overall approach to control those exposures. That approach often includes involvement of our fee-based subsidiary, Risk Control Services.
Starting with an understanding of your particular operation and a review of your loss experience, we tailor a loss control action plan that has specific objectives, a timetable, and a schedule for follow-up reports to you and discussions on how to refine the program over time.
We make sure that experience modification factors are accurate, so that you are not unfairly disadvantaged by a period of unfavorable loss experience. A key component of our service is a claims management system that enables you to know the status of every active claim, from first report through final resolution.
We represent insurance carriers that have shown commitment to the insurance industry through their own expertise and specialized insurance products, such as industry-specific commercial general liability forms, owner-controlled insurance programs, and coverage for environmental liability.

Leave an email message requesting more information.

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Pollution Liability Coverage for Petroleum Storage

CIMA can place pollution liability coverage for owners of above-ground or underground petroleum storage tanks at gas stations/convenience stores, fuel distribution facilities, trucking companies, contractors' locations, manufacturing plants, local government facilities, hospitals, auto dealers, and other locations where this risk exposure exists.

We can place the coverage either for the owners directly, or through the insurance brokers and agents who represent them. We have a number of insurance companies from which to choose.

A few features of our program:

Claims-made coverage for cleanup costs on-site and off-site, and third-party loss.
Can be used to meet EPA financial-responsibility requirements.
Limits available up to $50 million.
Defense costs are in addition to the limit of liability.
Automatic six-month extended reporting period, plus optional period of up to three years.
Deductible and "pay on behalf" wording.
Natural resource damage is defined and covered.

Leave an email message requesting more information, or call Debbie Custis at 800.468.4200.

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CIMA Program for Training and Development Professionals

Our program provides professional liability (errors and omissions) coverage designed to protect against allegations that the trainer, through an error or omission in his or her services, caused some economic harm.

For example:

The employee recruitment/retention program designed and implemented by the trainer is considered a failure because retention is worse than before.
An employee has brought suit under the Family and Medical Leave Act. The trainer who revised the employment manual and trained the human resources staff had given inadequate attention to the FMLA.
A customer company had to pay thousands of dollars in overtime to employees who should have been exempt under the Fair Labor Standards Act. They are blaming the trainer who was "supposed" to implement a timekeeping system that differentiated between exempt and nonexempt employees.
The just-in-time inventory system doesn't save money at all; in fact, it has cost the company two of its best customers. The company blames the trainer who was supposed to make certain everyone in shipping and accounting demonstrated proficiency before the new system came on-line.
The trainer accomplishes Objectives A, B and C perfectly. But the customer inferred that there was an Objective D as well, and based acceptance of the trainer's proposal on that mistaken inference.
A trainer who is a member of a consortium performs his or her work perfectly. Another member of the consortium, called upon for a specific aspect of the contract, is alleged to have made a serious error. The customer company doesn't even know the other consortium member. They are holding responsible the trainer they know.
The trainer develops multimedia materials or written materials for the customer that, unknown to the trainer, include images, text and other intellectual property that was misappropriated at the source. The copyright holder files a third-party complaint for infringement.

Some of the features of our program:

Provides protection against allegations of economic damages caused by an error in your professional services.
Low minimum premiums, with liability limits of $250,000 per occurrence/$250,000 aggregate. Higher limits are available.
Includes defense costs.
No exclusion for warranties and guarantees.
No exclusion for patent, trademark or copyright infringement.

Go directly to an application, or call Joan Wankmiller at 800.468.4200.

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Nonprofit Directors & Officers Coverage

All past, present and future directors, officers, employees, volunteers, trustees, committee and the entity itself are covered. What's more, the severability feature protects all the remaining insureds if it transpires that any individual insured provided false information on the application.
Employment practices are covered. Wrongful termination; failure to hire or promote; discrimination, including sexual harassment; and other such practices are covered. So are claims alleging mental anguish and emotional distress.
Punitive damages can be covered in states where those damages are insurable.
The insurer pays all defense costs up front. You don't have to hire attorneys or in any other way manage your own defense.
Defense costs do not reduce your limit of coverage. Suppose, for example, you have selected a $1 million limit of coverage. Now suppose there is a judgment against you of $850,000, and legal fees amount to $200,000. Although total costs of your claim exceeded the limit of coverage by $50,000, there would be no "gap," no uncovered expense, with our coverage. In fact, you still would have $150,000 available should there be a second claim during the coverage period. This is an unusual feature in a nonprofit D&O policy.
"Claim" is defined very broadly. A "claim" is triggered as soon as you receive written notice that someone intends to hold you responsible for a wrongful act. When the claim is triggered, so is your defense.
Deductible amounts begin at $1,000. You may select a higher deductible, and therefore lower your premium, if you wish.
We cover what many of our competitors exclude. Here are some examples of allegations that can be made against you that we cover: Libel, slander or defamation; invasion of privacy; wrongful entry or eviction; false arrest; false imprisonment; malicious prosecution; and infringement of copyright, or trademark or other unauthorized use of title; plagiarism or other misappropriation of ideas.
Prior acts are covered. This is in contrast to the typical nonprofit D&O policy, which covers only incidents occurring on or after the date coverage is first placed.
The policy cannot be canceled by the insurer except for nonpayment of premium.
"Two-way" extended reporting period is standard. If either you or the insurer choose to nonrenew coverage, you automatically are provided a 60-day extended reporting period for claims, and you have the option to purchase an additional period.

Complete a brief application for D&O Liability Insurance coverage.

Leave an e-mail message requesting more information about D&O coverage.

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CIMA and Legal Service Professionals

In December 1992, CIMA began offering an alternative for the professional liability insurance needs of attorneys who represent the indigent. Civil legal services professionals and public defenders alike are eligible. Our program has grown to the point where we insure more than 200 such organizations nationwide, and have enabled them to save millions of dollars in premium since our program began.

A few features of our program:

The policy is a claims-made policy, with full prior-acts coverage. It pays 100% of defense and indemnification for covered claims made under the defense of contempt proceedings, and employment practices coverages, after the deductible has been satisfied.
No deductible is required.
Employment practices coverage promises to defend and indemnify the insured against claims arising out of employment practices, and does not limit coverage to specific employment practices.
The legal services organization has the option to purchase an extended reporting period of one year, when coverage is terminated either by the insured organization or the insurance company. With the endorsement in effect, the insurer would respond to any claims you report during the extended period that are based on events that took place while the policy was in effect. This provides important protection against claims that might be filed after your policy expires.
When outside referral coverage is purchased, the policy provides coverage for all referrals approved by the organization, not just referrals to organizations designated specifically by endorsement.
Protection under the personal injury coverage includes publications or utterances in the course of, or related to advertising, broadcasting or telecasting activities conducted on behalf of the insured. Coverage also is provided for claims involving alleged publication or utterances in violation of an individual's right of privacy, and personal injury claims alleging mental distress, mental anguish, mental illness, or humiliation.
Professional liability coverage is extended to non-lawyer employees arising out of services rendered within the scope of such person's employment, and does not restrict coverage to services performed while under the direction of lawyers.

If your organization needs higher limits:

A few organizations eligible for the CIMA program require limits of liability higher than $1,000,000 each claim/$1,000,000 aggregate, for professional liability coverage and/or management errors and omissions coverage. If your organization either has now or expects to need higher limits, we will be happy to work with you to make certain that you have the level of coverage you need.

To apply for coverage in the CIMA program, or for further information, contact Aaron Jones at 800.468.4200.

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CIMA and Pension Professionals

CIMA's professional liability, or errors and omissions, insurance program for pension professionals has been in continuous service for nearly two decades. It offers the best combination of broad coverage, competitive cost and stability, of any professional liability insurance contract available.

Some of the features of our program:

No deductible for defense costs. Our defense is first-dollar.
Limits up to $2 million per occurrence/$4 million aggregate are available. Also, defense costs up to the occurrence limit (maximum $1 million in defense costs) are covered. These defense expenses do not reduce the amount available to pay a claim.
Ability to direct your own defense. You are able to select your own counsel, and your defense costs are paid on your behalf, not just reimbursed to you.
The definition of professional services clearly shows that coverage is provided for the sale of 401(k) plans and mutual funds.
The definition of professional services also clearly shows that coverage is provided for investment counseling when no fee is charged for this service.
Automatic 60-day tail coverage, for no additional premium.

If you are considering alternative markets

Since starting our program, we have never withdrawn from the market. We have never made a practice of luring customers in with low pricing the first year, only to impose substantial increases at renewal. Instead, we have remained a stable force through "hard" and "soft" markets.

Before considering another market, we encourage you to make certain the price you are quoted is for coverage comparable to ours - including all the features listed above. If you would like for us to provide the coverage comparison for you, we will.

To apply for coverage in the CIMA program, or for further information, contact Tracy Denman at 800.468.4200.

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Directors and Officers Liability Insurance for For-Profit Firms, and
Personal Director Liability Insurance

Why to consider corporate D&O:

In many cases, board members demand it. They should; their own assets are at risk, unless they are protected by insurance or the firm's own resources.

In a survey of private companies by Chubb, 18 percent reported that they had been sued within the past few years. Nearly two in five believed it is "likely" they will be sued in the future - by employees, customers, vendors or shareholders. A Tillinghast survey of 2,139 firms found that suits by employees accounted for half of all claims against smaller for-profit organizations. Among larger for-profits, employee suits (mostly for discrimination - including sexual harassment -- and wrongful termination) accounted for a quarter of claims, while the majority of claims were the result of shareholder action.

The Tillinghast survey also found that merger and acquisition activity more than doubles the odds of a D&O claim.

Why to consider personal director liability insurance:

Although a corporate D&O policy is crucial protection, there are several circumstances in which such a policy might fail to protect the individual director completely. Limits can be inadequate for claims. In bankruptcy proceedings, the limits of the policy can be seized as assets available to creditors. The D&O insurer can rescind the policy if the application was fraudulent. Depending on the policy's exclusions, an individual director can be exposed to risk because of wrongful acts of other directors.

In a worst case, the individual director's personal assets are entirely at risk as a perverse result of his or her well-intentioned service.

Personal director liability insurance can be purchased either by an organization, on behalf of one or more individual directors, or by directors themselves.

How CIMA can help:

We can access the entire market, either for a corporate policy or individual policy, and offer you a comparison and recommendations. Contracts vary widely in their protection, terms and conditions. We will guide you through.

If you need more information on the topic or would like for us to develop a proposal, please call Vice President Susan Kahn at CIMA, 800.468.4200, or send her an email message with instructions on how to contact you.

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