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Changes to statutes of limitations and recent court decisions are making sexual misconduct liability increasingly difficult to underwrite. In light of anticipated market volatility, we’re taking steps to limit our future exposure to sexual misconduct liability in commercial lines policies.

Coming coverage changes for Custom and Express policies

For new business and endorsements to existing business, on policies with effective dates July 1, 2024, or later, we will no longer offer sexual misconduct liability coverage. Beginning Aug. 1, 2024, a sexual misconduct exclusion will automatically attach to new policies.

For existing business, on policies with renewal dates Oct. 1, 2024, or later, we will be removing sexual misconduct coverage.

• For policies with forms that specifically include sexual misconduct liability coverage, policyholders will receive a notice advising them of the change in coverage.
• For policies without sexual misconduct liability coverage forms, policyholders will receive a notice letting them know we’re attaching a sexual misconduct exclusion form.

These changes apply to both primary (BOP and general liability) and umbrella policies.

*Note that renewing policies with sexual misconduct liability coverage will continue to be referred to underwriting to ensure they meet underwriting guidelines.

A surety bond is an agreement entered into by three parties — the surety company, the principal and the obligee. In the agreement, the surety company guarantees the performance and/or legal or regulatory obligation by the principal to the obligee. Here are some key differences between surety bonds and traditional insurance policies:

• Surety bonds are an agreement between three parties, while traditional insurance policies are an agreement between two parties.
• Surety bonds protect the obligee, while traditional insurance policies protect the insured.
• With surety bonds, there is no expectation of loss, while traditional insurance policies are calculated by pooled risk.
• Surety bonds are project specific, while traditional insurance policies are usually term specific.
• Surety bonds are based on a penal sum, while traditional insurance policies are based on policy limits.

Contract bonds and commercial bonds

Contract bonds and commercial bonds are the two main types of surety bonds. While contract bonds are typically written for construction projects, where the obligee is the project owner and the principal is the contractor, commercial bonds are written for a multitude of different industries.

Some common types of contract bonds are bid bonds, performance bonds, payment bonds and warranty/maintenance bonds. Some common types of commercial bonds are court bonds, license and permit bonds, public official bonds and fiduciary bonds. Check out this in-depth guide to learn more about which surety bonds are often required by various industries.

More information

Whether your needs are for contract or commercial bonds, Liberty Mutual® Surety has you covered! As the world’s largest surety, we have the strength and expertise to help contractors and businesses of all sizes access the bonds they need to thrive.

To learn more or get started, visit the surety bonds page.

States affected: AZ, FL, IA, ID, NJ, NY, PA, VA, VT and WI

Late last year, we updated the model we use to assess and underwrite risk for workers compensation. Effective March 22, we added the business owner’s credit-based insurance score to our underwriting model to underwrite these risks even more accurately.

How it works

When quoting a new policy, you will be asked to provide the business owner’s name, home address, date of birth and permission to run a soft credit check, which will not affect the owner’s credit. For businesses with multiple owners, enter information for the person primarily responsible for day-to-day financials, such as the chief financial officer.

You will have the option to skip a credit check for an initial quote, but keep in mind that we will need to run a credit check before you can bind the quoted policy. Quotes generated without a credit-based insurance score may not be accurate.

Declined risks

If eCLIQ^® declines a risk after you provide the business owner’s information, it will indicate if the credit-based insurance score was a contributing factor.

In these cases, you will be given the option to send your customer an Adverse Action Notice describing the reasons for the decline through the agent portal.

Our new commercial auto product in eCLIQ^® Simple™ offers enhanced pricing segmentation, flexible coverages and a much faster, easier quoting experience. What’s more, expanded eligibility allows you to quote most commercial auto risks!

You’ll have the most success writing multiline accounts with the following risk characteristics:

• Retail, general/health/professional services, real estate, food manufacturing and carpentry industries
• Well-established businesses (15+ years)
• Older vehicles (15+ years)*
• Drivers age 40+ without violations
• Quotes with heavily populated driver lists, preferably with at least as many drivers on the policy as there are power units
• Claims-free businesses
• Smaller fleets with 1-4 power units

*Older vehicles typically have lower repair costs and lower annual mileage than new vehicles.

Learn more about auto in eCLIQ Simple by visiting the agent portal – and be sure to sign up for our instructor-led webinar taking place Jan. 27.

Note that, with the launch of our new auto product in eCLIQ Simple, we’ve discontinued the legacy auto product we’ve offered through the eCLIQ platform. You are currently only able to quote new commercial auto business in eCLIQ Simple. This change only applies to new business and does not affect existing policies.

In Connecticut, our comprehensive cyber suite endorsement will soon be available for monoline general liability (GL) and business package policies with effective dates on or after June 1.

With cyber suite for monoline GL and business package policies, your clients will enjoy expanded limits of up to $5 million to provide protection for more complex business exposures.

Offered through The Hartford Steam Boiler Inspection and Insurance Company and replacing the data security endorsement, cyber suite gives your small commercial clients more robust coverage for today’s digital world.

To learn more about cyber suite for monoline GL and business package policies – including how to quote it – check out the on-demand training and visit the product page.

Starting Feb. 19, trailers with a load capacity greater than 2,000 pounds that are classified as “service/utility trailer” will be updated to the correct classification — “trailer” or “semi-trailer,” as applicable — effective with the policy’s renewal. Trailer classification will be confirmed using manufacturer and model information. This change may result in premium impacts.

Trailers with a larger load capacity represent more risk in the event of a loss and must be rated appropriately for the exposure. Inaccurate data and improperly rated policies lead to premium leakage, which drives higher rates at new business and renewal.

Use these definitions to help ensure a better client experience:

• Service/utility trailer — any trailer or semi-trailer with a load capacity of 2,000 pounds or less.
• Trailer — any trailer with a load capacity greater than 2,000 pounds, other than a semi-trailer.
• Semi-trailer — a trailer with a fifth-wheel coupling device for use with a truck-tractor, with load capacity over 2,000 pounds. This includes bogies used to convert containers to a semi-trailer.

Each state requires a minimum owner’s payroll on general liability (GL) policies. When you quote a GL policy, eCLIQ displays that state-specific minimum payroll amount.

A recent review revealed that a significant number of GL policies have an owner’s payroll amount below the required minimum. This month, we have started to correct these policies at renewal by increasing the owner’s payroll amount to the state minimum.

If you have any questions about this update, please contact your underwriter.

States affected: AL, OK, RI, TX, VA

A Punitive Or Exemplary Damages Exclusion will begin automatically attaching to new business and renewal quotes/policies according to the schedule below:

Texas: Starting Jan. 18 for policies with a written date on or after Feb. 1 (eCLIQ® and eCLIQ® Simple™)

Oklahoma, Rhode Island and Virgina:  Starting Jan. 25 for policies with a written date on or after Feb. 1 (eCLIQ)

Alabama:  Starting Feb. 8 for policies with a written date on or after March 1 (eCLIQ)

Our new commercial auto product in eCLIQ^® Simple™ offers enhanced pricing segmentation, flexible coverages and a much faster, easier quoting experience. What’s more, expanded eligibility allows you to quote most commercial auto risks!

You’ll have the most success writing multiline accounts with the following risk characteristics:

• Retail, general/health/professional services, real estate, food manufacturing and carpentry industries
• Well-established businesses (15+ years)
• Older vehicles (15+ years)*
• Drivers age 40+ without violations
• Quotes with heavily populated driver lists, preferably with at least as many drivers on the policy as there are power units
• Claims-free businesses
• Smaller fleets with 1-4 power units

*Older vehicles typically have lower repair costs and lower annual mileage than new vehicles.

Learn more about auto in eCLIQ Simple by visiting the agent portal – and be sure to sign up for one of our instructor-led webinars, with available times Jan. 23 and 25.

Note that, with the launch of our new auto product in eCLIQ Simple, we’ve discontinued the legacy auto product we’ve offered through the eCLIQ platform. You are currently only able to quote new commercial auto business in eCLIQ Simple. This change only applies to new business and does not affect existing policies.

Traveling the world. Buying a beach house. Retirement dreams like these can turn into nightmares when a dishonest employee is managing a pension or benefit plan. With an ERISA bond from Liberty Mutual Surety, you can help make sure your customers’ funds are protected.

An ERISA bond, also called a fidelity bond, protects insureds from losses incurred as a result of dishonest activity by a covered person. The Employee Retirement Income Security Act (ERISA) of 1974 requires that all fiduciaries or individuals appointed to oversee and manage employee benefit plans obtain an ERISA bond. If the fiduciary steals or embezzles from the benefit plan, the bond will cover incurred losses up to the coverage limit.

Interested in offering ERISA bonds? Visit us online at the Surety Agents’ Portal, or contact us at bonds@libertymutual.com.

Effective immediately, for smaller commercial new business accounts with premiums of $25,000 or less, California agents will be asked to enter them directly into eCLIQ^®. We will no longer accept paper submissions via the CAsubmit@LibertyMutual.com inbox.

For new business accounts with premiums greater than $25,000, we will still accept paper submissions via the CAsubmit@LibertyMutual.com inbox.

There are no changes for Farm and Inland Marine.

As a reminder, the new Package/Product Determination Tool (which recently replaced the Pre-Qualify Tool) can help you find the right package product for your clients. The new tool offers an improved quoting experience, with features such as:

• Dynamic business description search field, so you can search by type of business or ISO code
• Indication of whether your client’s business is within appetite before prompting you to answer underwriting and product fit questions. Appetite information is available at a classification level only; decision to provide a quote will depend on individual risk attributes
• Integration into eCLIQ’s main menu, for a more streamlined quoting experience

Affected states: AL, AZ, CO, GA, IA, ID, IL, IN, MD, MI, MO, MS, MT, NE, NM, NV, OH, OK, OR, SC, SD, TN, TX, UT, WI, WV, and WY

You can now quote farm auto in eCLIQ Simple – and enjoy the benefits of enhanced pricing segmentation, flexible coverages and a much faster, easier quoting experience.

If you haven’t already, sign up for one of our two remaining instructor-led webinars – taking place today and Nov. 30. Learn more about auto in eCLIQ Simple by visiting the product page on the agent portal.