With Growth Comes Change

Introducing the updated Management Company Errors & Omissions Coverage

In 1997, AMC Institute established an insurance program customized to meet the specialized needs of its members. Since then, AMC’s practices and breadth of services have grown immensely. As your client associations’ have grown, so has the potential for errors and omissions on the part of you or your staff in managing their needs. 

From an insurance standpoint, there are two tasks for the administrator/agent. 1. To be sure that the policy created doesn’t provide unnecessary coverage which could cost you, the buyer, too much premium. 2. To be sure that your needs haven’t grown beyond the limits of the policy as it was originally structured. 

With the help of AMC Institute, AMBA is introducing a new Association Management Company Errors & Omissions policy. For AMCs currently insured through the AMCI program, this new policy includes Employment Related Practices coverage, just like the current policy and is structured to work side-by-side with the Association Professional Liability Policy you would purchase for your client associations. This is in addition to some new enhancements, including:

• Defense Cost Paid Outside the Policy limits
• Employment Practices
• Punitive Damages
• True Worldwide Coverage
• Leased employees included as insureds
• Automatic Subsidiary Coverage
• Outside Directors for service on other nonprofit boards
• Third Party & Personal Injury (for most classes)

We have negotiated this new policy at a minimum premium of $500. Having surveyed the insurance marketplace, we found this premium to be a third of what the competition is asking for. In some cases the competition would even be providing less coverage at a higher premium. 

AMBA and AMCI understand change is not always easy, but growth-inspired change is necessary, to accommodate the current times. Our mutual goal is to introduce such change in a smooth and easy for the AMCI members. 

If you are currently insured through the AMCI APLI program, your policy will continue to provide the free coverage option until your 2011 renewal. At that time, you will be asked to apply and consider purchasing the new Management Company Errors & Omission coverage. We encourage you to take advantage of this offer to ensure your business has the best protection we can offer. Thank you for your business and your support of the AMCI Insurance Program.