Chubb Provides Small Business Enhancements To Its Specialty Insurance Package Product
Offers Additional $1 Million Defense Cost Limits, Lower Employment Practices Liability Deductibles, and Shorter Applications

WARREN, NJ, October 28, 2004 – The Chubb Group of Insurance Companies is now offering a package of eight key insurance coverages that is better tailored to the needs of small businesses.

The enhancements to Chubb’s ForeFront Portfolio^SM*, a package of eight distinct coverage areas for private companies, is now available to eligible companies with fewer than 250 employees. The enhancements include:

• A lower minimum employment practices liability deductible for eligible private companies. An employment practices liability insurance (EPLI) deductible is now available as low as $2,000 for some ForeFront Portfolio customers;
• No directors and officers liability insurance deductibles for eligible customers who also purchase Chubb’s ForeFront Portfolio EPLI;
• The option to purchase an additional $1 million in defense cost insurance for each liability coverage purchased; and
• A policy application that has been streamlined to make it easier for smaller private companies to apply for the insurance.

"Small private companies that have struggled with decisions to buy the right type and amount of insurance can now better tailor their insurance coverage to their specific needs," said Lisa McGee, a vice president at Chubb & Son and Private Company Customer Group manager with Chubb Specialty Insurance.

Not all enhancements are available in New York and California.

Introduced in 2001, ForeFront Portfolio addresses many of the most significant coverage needs of privately held companies through one policy. Its eight distinct coverage sections are: directors and officers liability, employment practices liability, crime, fiduciary liability, miscellaneous professional liability, Internet liability, kidnap/ransom and extortion, and workplace violence expense insurance.

ForeFront Portfolio customers may select one or as many as eight coverage sections and may purchase individual limits for each coverage section or a single combined limit of liability for all of the liability coverages.

"Some smaller companies may feel they are at a greater risk for costly lawsuits from, say, employees or former employees," McGee said. "With these enhancements, those companies would have the option to increase their defense cost limits for Employment Practices Liability Insurance."

A recent survey sponsored by Chubb shows that small private companies are vulnerable to a variety of risks that can have a significant financial impact.

One in 10 private companies with fewer than 100 employees said an employee or former employee sued the company or its directors and officers during the past few years, according to The Chubb 2004 Private Company Risk Survey. But twice as many small companies (20%) said they anticipated lawsuits from employees or former employees this year, according to the survey.

The survey was sponsored by Chubb and conducted by Impulse Research Corp., a market research firm in Los Angeles. The firm interviewed the CEO, CFO, and other top officers at 300 privately held companies.

More than one in four (26%) private companies with fewer than 100 employees reported that an employee had stolen company funds, equipment, inventory or merchandise during the past few years, according to the survey. Even more (43%) said they anticipated employee theft this year.

Still, despite these anticipated risks, most small-company executives are not buying insurance to help protect their companies. Just 21% of the companies with fewer than 100 employees purchased employment practices liability insurance, and only 7% bought crime insurance, according to the survey.

The member insurers of the Chubb Group of Insurance Companies form a multi-billion dollar organization providing property and casualty insurance for personal and commercial customers worldwide through 8,000 independent agents and brokers. Chubb’s global network includes branches and affiliates in North America, Europe, Latin America, Asia and Australia.

* ForeFront Portfolio is available through Chubb-appointed retail agents. An identical product, Power Source^SM, is available through Chubb-appointed wholesale producers.