Comparison: Lloyd's Fiduciary v. Allied Miscellaneous

1. Covered Professional Capacity. Lloyd's provides coverage for insureds acting in the capacity of a fiduciary, daily money manager, computer consultant, care manager or bookkeeper. Moreover, fiduciary is defined to include the following:
   • a guardian, guardian ad litem or conservator;
   • an executor or estate administrator;
   • a bankruptcy administrator;
   • a representative payee;
   • a receiver;
   • an agent or attorney in fact under a power of attorney; or
   • a trustee.
   Allied World's policy is written on a miscellaneous form which can be adjusted according to the insured's application. Both carriers have been willing to increase the scope of covered professional services in some cases. In fact, Lloyd's has a number of standard additional capacity endorsements including:
   • Daily Money Manager;
   • Fiduciary Trainer;
   • Debt Counselor;
   • Expert Witness;
   • Grant Writer;
   • Management Consultant;
   • Medication Coordinator;
   • Neutral Facilitator;
   • Notary Public;
   • Payroll Processor;
   • Professional Organizer; and
   • Tax Preparer.
2. Additional Coverages. Lloyds provides the following additional coverage sub-limits (not available from Allied World, except for $5,000 in disciplinary proceeding or lost earnings reimbursement coverage). Standard limits are listed with an * showing that higher limits are available:
   • Bodily Injury/Property Damage/Fire Legal/Advertising Liability: $250,000*, including
   • $50,000 Fire Legal Liability,
   • $25,000* Hired Auto/Non-Owned Auto Liability, and
   • $2,500/$5,000 Medical Expense.
   • Data Security Breach/Client Network Infection (Cyber): $50,000*
   • Contractual Travel Indemnity: $25,000
   • Dishonesty/Theft: $25,000*
   • Terrorism Traveler Reimbursement: $25,000
   • Identity Theft Expense: $15,000
   • Disciplinary Proceedings Defense: $10,000
   • Image Restoration and Counseling: $10,000
   • Temporary Meeting Space Reimbursement: $10,000
   • Emergency Real Estate Consulting Fee: $5,000
   • Loss of Key Indiviual Replacement Expenses: $5,000
   • Lost Earnings Reimbursement: $250/Day; $5,000/Year
   • Bodily Injury/Personal Property Damage due to Assault: $2,000
   • Travel Delay Reimbursement: $1,500
3. Consent to Settle. Both policies provide that the insured's consent is required to settle a claim and that if consent is withheld the carrier's liability shall not exceed the amount that the claim could have been settled for. However, the Lloyd's policy goes further to provide that if the insured withholds consent, the carrier will engage in substantive discussions with the insured to seek common ground.
4. Claims-Free Accounts Only. Allied World expressly excludes coverage for insureds which do not qualify as a "claims-free account". Thus, an Allied World insured may be non-renewed following the reporting of any claim. Under certain circumstances, Allied may agree to remove this restriction by endorsement. Lloyd's has no such restriction.
5. Coverage for Pro Bono Services. Allied World only covers claims arising out of professional services rendered for a fee. Lloyd's, by contrast covers pro bono as well as paid professional services.
6. Intentional Acts Defense. Lloyd's provides defense coverage for alleged intentional acts, as well as indemnity coverage for any insureds innocent of such conduct, even if a partner is at fault. Allied World provides intentional acts coverage initially; however, if any insured is found guilty of intentional misconduct, the insured is required to reimburse Allied World for all defense costs expended on the claim.
7. Bodily Injury Exclusion. The Allied World policy excludes claims based on allegations of bodily injury and property damage.
8. Unlicensed Insured Exclusion. Allied World excludes coverage for any insured who is not licensed with the applicable agency. Lloyd's has no such exclusion.
9. Insurance Exclusion. Allied World excludes coverage for claims based on the insured's alleged failure to procure and maintain insurance. The insurance exclusion in the Lloyd's policy has broad exceptions, which extend coverage to insurance-related claims based on the insured's clerical error, failure to discover insurable property within 90 days of appointment or thereafter following a diligent search and for work performed as trustee of a life insurance trust.
10. Investment Advice Exclusion. Both policies have investment advice exclusions; however, the Lloyd's policy excepts from the exclusion vicarious liability for advice rendered by a properly retained investment advisor. Allied World will remove part of their investment advice exclusion on request, but leave in an exclusion related to the future value of any security.
11. Extended Reporting Period ("Tail") Coverage. The Allied World policy offers either a one-year or three-year tail endorsement for 100% or 150% of the prior year's premium. Lloyd's offers an annually renewable tail, which the insured can keep in place as long as desired. Moreover, for insureds who retire, the first year tail cost can be as low as 50% of the prior year's premium, depending upon the number of years the insured has been with Lloyd's. Also, the Allied World automatic tail is for 30 days, compared to 60 days with Lloyd's.
12. Insolvency Protection. Lloyds maintains its unique "chain of security", including access to Lloyd's Central Funds, which pool risk between insurance syndicates protecting insureds against the potential of insurer default. No other carrier offers such a high level of insolvency protection, even those participating State-run Guarantee Funds.

- The Lloyds Fiduciary policy does not provide coverage for independent contractors performing any services other than Fiduciary responsibilities. This includes independent contractors doing money management or care management. Allied World covers any independent contractor doing work on behalf of the Named Insured.