Case Study: Custom Coverage without Compromise - How Newfront Secured $100M in Bespoke E&O Insurance Coverage with Streamlined Claims Management
Published September 2, 2025
The Challenge: A complex global financial institution faced a critical gap in its risk management strategy: the organization had been operating without Errors & Omissions (E&O) insurance coverage for an extended period. While peer institutions were able to maintain their coverage with traditional industry-standard program structures, the client found these structures to be too cost-prohibitive for the scale needed.
With $100 million in coverage required, conventional vertical layered programs would have created an unsustainable long-term cost structure as well as limited “market standard” coverage that would NOT solve for the client's needs.
The Strategy: Recognizing the unique nature of this challenge, the Newfront Financial Institutions & Fintech team took a non-traditional approach. Rather than building a conventional vertical program with multiple layers, the strategy centered on creating a horizontal $100 million quota share program. Having 20 carriers issuing their own primary coverage opinions would be a claims disaster waiting to happen. Instead, the team successfully negotiated with 19 carriers to relinquish claims control to a single carrier with a secondary carrier acting as a “check and balance.”
The Results: The innovative insurance structure enabled the client to achieve their target pricing objectives while securing $100 million in coverage. Additionally, the customized approach provided coverage terms that far exceeded standard market offerings, giving the client robust protection tailored specifically to their operational profile and risk exposure. Finally, by consolidating claims management under a single carrier with secondary oversight, the client eliminated the claims friction and complexity typically associated with large, multi-carrier programs.
