Travelers 2014 Annual Report Download - page 11

Table of Contents
benefits and vocational rehabilitation benefits. The Company emphasizes managed care cost containment strategies, which involve
employers, employees and care providers in a cooperative effort that focuses on the injured employee's early return to work and
cost
- effective quality care. The Company offers the following types of workers' compensation products:
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guaranteed - cost insurance products, in which policy premium charges are fixed for the period of coverage and do not vary
as a result of the insured's loss experience;
•
loss - sensitive insurance products, including large deductible and retrospectively rated policies, in which fees or premiums
are adjusted based on actual loss experience of the insured during the policy period; and
•
service programs, which are generally sold to the Company's National Accounts customers, where the Company receives
fees rather than premiums for providing loss prevention, risk management, and claim and benefit administration services to
organizations under service agreements.
The Company also participates in state assigned risk pools as a servicing carrier and pool participant.
•
Commercial Automobile. Provides coverage for businesses against losses incurred from personal bodily injury, bodily injury to
third parties, property damage to an insured's vehicle and property damage to other vehicles and other property resulting from the
ownership, maintenance or use of automobiles and trucks in a business.
•
Commercial Property. Provides coverage for loss of or damage to buildings, inventory and equipment from a variety of events,
including, among others, hurricanes and other windstorms, tornadoes, earthquakes, hail, wildfires, severe winter weather, floods,
volcanic eruptions, tsunamis, theft, vandalism, fires, explosions, terrorism and financial loss due to business interruption resulting
from covered property damage. For additional information on terrorism coverages, see "Reinsurance—Catastrophe Reinsurance—
Terrorism Risk Insurance Program." Property also includes specialized equipment insurance, which provides coverage for loss or
damage resulting from the mechanical breakdown of boilers and machinery, and ocean and inland marine insurance, which provides
coverage for goods in transit and unique, one
- of - a - kind exposures.
•
General Liability. Provides coverages for businesses against third - party claims arising from accidents occurring on their premises
or arising out of their operations, including as a result of injuries sustained from products sold. Specialized liability policies may also
include coverage for directors' and officers' liability arising in their official capacities, employment practices liability insurance,
fiduciary liability for trustees and sponsors of pension, health and welfare, and other employee benefit plans, errors and omissions
insurance for employees, agents, professionals and others arising from acts or failures to act under specified circumstances, as well
as umbrella and excess insurance.
•
Commercial Multi - Peril. Provides a combination of the property and liability coverages described in the foregoing product line
descriptions.
International
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Provides coverage for auto and motor (similar to automobile coverage in the United States), personal property, employers' liability
(similar to workers' compensation coverage in the United States), public and product liability (the equivalent of general liability),
professional indemnity (similar to professional liability coverage), commercial property, surety, marine, aviation, personal accident
and kidnap & ransom. Marine provides coverage for ship hulls, cargoes carried, private yachts, marine
- related liability, offshore
energy, ports and terminals, fine art and
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