Today, we're featuring AFPD, one of NSM Insurance Group's signature programs offering AFPD was established in the mid-1980s with a focus on providing malpractice insurance for attorneys and dentists. NSM Insurance acquired the program in 2011, expanding its distribution and doubling its premium in just three short years. "We identified key agents and brokers with whom to partner in regions across the country," explained Brian, "to expand our footprint and to sell additional products, such as Cyber Liability. We've also doubled our staff, adding to our home office underwriting team in Pennsylvania as well as hiring underwriters in regional offices in Chicago, Dallas, and Walnut Creek and Mission Viejo, California. With underwriters working out of our regional offices, we have a strategic advantage in the type of unparalleled service we can offer to agents writing business in these locations."
In addition, APFD just launched a brand-new Lawyers Professional Liability product. "I am really excited about our new product," said Brian. "We've launched it effective July 1st and the highlights are available on our website at www.afpd.net. I feel that from a coverage, service and stability standpoint, AFPD leads the marketplace. We are giving lawyers several coverage options in lieu of just one. This allows them and their agents to work together to decide which coverage option is right for them, based upon exposure and budget."
NSM Insurance Group as part of its unwavering commitment to the Professional Liability market also recently purchased Professional Underwriters Agency (PUA). PUA provides coverage for architects and engineers and specialty coverage for miscellaneous professions such as technology, healthcare consultants, marketing consultants, real estate agents, and staffing, among others.
When speaking with Brian about the benefits of partnering with AFPD and NSM Insurance Group stability is a key factor. "In the Professional Liability market, particularly in the area in which we focus - lawyers, dentists and cyber - there has been some instability in the market among carriers," said Brian. "They haven't had the underwriting success we've had, allowing them to remain in the space as long as we've have. We offer our agency partners the stability and commitment they require to continue to have access to markets and the ability to insure their customers on a competitive basis."
Another important benefit in working with AFPD is their distribution philosophy. "We appoint agency partners in key areas around the country," explained Brian. "There's an approval process an agency goes through with us to become appointed. In addition, we work hand-in-hand with our agents to better respond to their needs. For example, we have advisory councils for our key agents so that they can participate more fully in the development of our products. They provide us with significant input on sales strategies as well critical feedback for claims handling. It's a true partnership."
Of course, claims handling is an important hallmark of AFPD's program as it is with all of NSM Insurance Group's programs. "There is so much attention by the buyer on price but where the rubber really meets the road is in the claims process. We're proud of our partner, York Claims Service, and the level of serve they provide. For example, if you look at our program for attorneys, all the claims handlers focusing on Lawyers Malpractice are lawyers themselves. They speak the language of the insureds going through the claimsexperience, which is very important. We try to do this with all our professions," said Brian.
How responsive the AFPD team is to their agency partners also has a major impact on the service they offer. "We provide 24-hour turnaround, which because of the very nature of our products involves a complex and sophisticated process in terms of what and who we are insuring," noted Brian. "It's very unusual to see that level of response. With Cyber Liability, we provide same-day turnaround on quotes, and for both Professional and Cyber Liability we can provide same-day policy issuance when the coverage is bound. The industry standard is 30 days."
AFPD Lawyers Professional Liability
In reviewing the specifics of AFPD's programs, several key product highlights and features stand out. The Lawyers Professional Liability program is available on an admitted basis in 47 states and on an Excess & Surplus Lines basis in all 50 states. The focus of the program is on small and mid-size law firms with fewer than 50 attorneys, and they can write up to 100 attorneys.
"Among the many product features, we provide coverage for disciplinary procedures and crisis management," explained Brian. "If there is an unexpected departure or death of a partner or practice group head and someone sues the firm for malpractice, our policy will also respond. Additionally, we have a broad definition for damages in our policy, which includes punitive and multiple damages where permitted by law. Many competitors' policies exclude punitive, exemplary and multiple damages. There is also a broad definition of wrongful acts, and we have extended coverage for fiduciary liability, which most competitors exclude. This is important as many attorneys serve in a fiduciary capacity for clients," noted Brian.
Also included is broad defense cost coverage outside the limit of liability and an unlimited free retirement tail policy for policyholders. "In addition, we have first-dollar defense coverage and EPL defense coverage built into our policy form."
AFPD Dentists Professional Liability
One of the main differentiating features of AFPD's Dentists Professional Liability product is that coverage can be written on a claims-made or occurrence form. "Most competitors offer one or the other with many shying away from writing coverage on an occurrence basis," explained Brian. "We even offer a ‘step-into' feature whereby the coverage can be written on a claims-made basis and then after a few years qualify for an occurrence form with a nominal difference in cost."
Insureds who have been with AFPD for three years also qualify for a free reporting tail, and have the option before then to qualify for an extended reporting endorsement for an additional cost.
What's more, under the AFPD program, dentists can qualify for risk management credits through on-line or off-line courses. These courses provide them with loss control for improving their operations from a liability exposure standpoint and risk management tools to help avoid claims. Once they qualify, insureds can receive 10% off their premiums for a three-year period. "They also have access to regulatory information, industry news and more - all through our carrier partner Medical Protective," added Brian.
Cyber Liability insurance is available for dentists and attorneys as well as a number of other eligible classes. The cyber product includes several components including coverage for first-party losses if there is some type of virus and for third-party claims in the event information stored on behalf of a client or patient is compromised. "We cover the credit monitoring expenses, public relations costs to help a firm or practice get ahead of its message in the event of a breach, investigative forensics, and notification costs, which can be very costly depending on state regulations and the number of individuals that need contacting. Our Cyber Liability coverage is competitively priced, too. Premiums start as low as $300.00 for $500,000 worth of coverage."
AFPD also offers special payment plans for their programs. They partner with a premium finance firm for their Lawyers program and offer a direct bill plan with payment options in the Dentists program.
To learn more about the opportunities available to become an agency partner with AFPD and expand your professional liability book of business, please contact Brian at 610-941-9877, ext. 142, or via email at: bddegraw@nsminc.com.