Risk managers are struggling to keep up with rising costs, despite leveling off in property
By Russ Banham|September 01, 2003 at 08:00 PM
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Like other risk managers, Dave Hennes, director of risk management at The Toro Co., expected the worst when his insurance policies came up for renewal recently. Good thing he braced himself–the premium for Toro’s directors and officers liability insurance jumped 200%. “That was a real tough one, and tough to stomach,” says Hennes from the Minneapolis headquarters of the $1.5 billion manufacturer of lawn care products. “From our perspective, the company was doing so well, with our stock at an all-time high, strong product brands, a great story to tell and a good, solid history as far as D&O, with no claims ever,” Hennes notes. “But D&O is being priced as a commodity today. Even with underwriters spending a day and a half with our CFO, the best we could get was a 200% increase. What could we do? It’s a coverage you simply have to have.”
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