An umbrella policy is extra protection over the primary limits of the insured. An analogy: After I finished this article, I put primary protection in place by clicking on my computer's "save" feature. The extra protection--or "umbrella"--would have been to run copies and/or transfer the material to a floppy disk.
As the primary market goes, so goes the umbrella market. Both are affected by capacity, pricing and underwriting changes. Responses to our survey indicate that pricing has been affected in some areas and underwriting has tightened for certain classes. Capacity is still widely available, so that will slow any dramatic changes in the short term.
Gulf Insurance Company's Nick Licato says: "Rates have leveled off and many risks are seeing small increases. Certain segments such as contracting, trucking, and health care are seeing double-digit increases. There also appears to be upward pressure on minimum premium thresholds. Due to poor reinsurance results, the trend may accelerate as treaties are renewed throughout the year and some facultative support for inadequately priced business diminishes. However, there is still a great deal of capacity, so the outlook for more significant, long-term changes is unclear." The Gulf Insurance Company writes commercial umbrella up to $50 million on lead or excess.
According to Judy Sigel, executive vice president of Distinguished Programs Group: "We're beginning to see some firming throughout the market in terms of pricing, but that's not to say we're expecting a repeat of the 1980s by any means. At that time, the tightening in the umbrella and primary markets came fast and furious. That's not the case today. Now we're just beginning to hear the drums roll.
"And from what we are seeing, the pricing increases are really contingent on the type of business. Good risks that have stable relationships with their carriers and favorable loss ratios may be seeing slight, very manageable increases, if any at all. It's really the tougher risks that are expecting most of the firming, and even then the increases have been slow and steady," Sigel says.
Distinguished Programs has not seen a significant change in capacity or availability and does not expect that to change. With capacity and availability remaining at stable levels, any noteworthy trends are related to pricing.
Markets are beginning to look at underwriting results with a more critical eye, according to Sigel. Going forward, that intensified focus on underwriting results may continue to create some tightening of the market, specifically in the case of more difficult risks or those that have poor loss experience.
Distinguished Programs places limits of $10 million to $200 million targeting real estate, hotels and contractors.
What about the personal lines market? It remains as competitive as ever. That means that pricing is level at best. The growing wealth of today's households means more autos in the garage, bigger homes, secondary residences, and more "toys."
Becky Lundberg, marketing director at RLI Insurance Company, agrees: "Anyone with assets to protect needs a personal umbrella policy. With recent investment gains in the stock market, there are more of these types of persons out there, and our production is reflective of that."
According to Lundberg, "RLI has maintained competitive pricing with relatively no rate increases over the past five years. During that time, however, we have introduced a number of enhancements to the program enabling more customers to qualify."
These enhancements include higher limits--$2 million, $3 million and $5 million are available. The Standard II provides coverage for up to 6 autos, 6 properties, 4 violations, 2 accidents, and 3 watercraft. Guidelines also have been relaxed on youthful drivers (under the age of 22) and vehicle type, according to Lundberg.
"We plan to introduce more enhancements over the next six months relative to our watercraft guidelines. These changes will reflect a more relaxed approach to our personal watercraft and their speed capabilities.
"We will also write over any underlying carrier as long as the primary limits required by RLI are maintained."
RLI Insurance Company is the only stand-alone personal umbrella that is available on a national basis on admitted, A rated paper--per Lundberg.
Finishing the sale with an umbrella will give your clients the asset protection they need. It will improve your account retention and increase revenues. The client has less reason to contact your competitor, and it is the professional approach to take.
The following companies responded to our survey and indicated that they are an umbrella market either in commercial lines, personal lines or both. Some will operate in all states while others will concentrate on a regional basis. In most cases, target markets are indicated.
Apollo General Insurance Agency, Inc.
P.O. Box 1508
Sonoma, CA 95476
Contact: Bob Elster
Phone: (800) 624-5829
Fax: (707) 996-7912
E-mail: bobe@appin.com
An agency and E&S broker operating in 46 states offering limits of up to $25 million targeting contractors, restaurants, and couriers. All carriers are A rated or better.
Arlington/Roe & Company, Inc.
8465 Keystone Crossing
Indianapolis, IN 46240
Contact: Allen J. Grau, CIC, or Steve Konkle, Commercial Lines; Janet Phillips, CIC, Personal Lines
Phone: (800) 878-9891
Fax: (317) 259-4106
E-mail: info@arlingtonroe.com
Web site: www.arlingtonroe.com
An MGA/E&S broker operating in IL, IN, KY and OH offering $50 million on commercial risks and no maximum on personal lines. Excess is also available. Carriers include RLI, Commercial Underwriters, Chubb, Fireman's Fund, Caliber One, General Star Indemnity, Taramack, National Union Fire, Ohio Casualty, Gulf Insurance, and Guaranty.
BAT Insurance Corporation
465 S. Beverly Dr.
Beverly Hills, CA 90212
Contact: Tony Trocino
Phone: (310) 282-0753
Fax: (310) 282-7133
An E&S broker operating in CA offering up to $50 million in limits for commercial lines and personal lines. Carriers include Great American, AIG, and Westchester Fire Insurance, all A rated.
Black/White & Associates
1999 Harrison St., Ste. 1230
Oakland, CA 94612
Contact: Linda Bartolone
Phone: (800) 966-6568
Web site: www.bwins.com
An MGA/E&S broker operating in most states offering limits of $20 million plus. Packages are available. Target markets include nonprofit social services along with all general business. Carriers include A rated Safeco and General Star.
Bolton & Company
1045 Starks Bldg.
Louisville, KY 40202
Contact: Greg Allgeier
Phone: (800) 292-6597
Fax: (502) 584-6131
E-mail: gaabolton@aol.com
Web site: www.boltonmga.com
An MGA operating in IL, IN, KY, OH and TN offering up to $25 million in limits. Only commercial classes are considered. A rated or better carriers are utilized to place coverage.
Russell Bond & Company, Inc.
295 Main St., Ste. 866
Buffalo, NY 14203
Contact: Jeff Latke, ASLI, Ext. 147
Chris Moyer, ASLI, Ext. 149
Tony Ambrose, ASLI, Ext. 143
Phone: (800) 333-7226
Fax: (716) 856-0403
E-mail: info@russellbond.com
An MGA/E&S broker operating in NY offering up to $50 million in limits. Primary GL is also written. Target markets include most commercial classes, preferred, distressed, specialty personal umbrella, and group personal umbrella. Various A rated or better carriers are utilized to place coverage.
R.J. Bostick & Associates, Inc.
38029 Third St.
Willoughby, OH 44094
Contact: Robert J. Bostick or Jana Miozzi
Phone: (800) 969-2463
Fax: (440) 942-3363
E-mail: jrbostick@rjbostick.comjshippitka@rjbostick.com
An E&S broker operating in all states. No limit on commercial risks. All classes are considered. Excess auto, buffer layers, and straight excess are available. A rated or better are utilized to place coverage.
J.E. Brown & Associates
2255 Ygnacio Valley Rd., #N1
Walnut Creek, CA 94598
Contact: Wendy Heathorn
Phone: (800) 955-8213
E-mail: marketing@jebrown.net
Web site: www.jebrown.net
An MGA operating in CA offering limits of up to $5 million for personal lines umbrellas. Target market is high-profile individuals. A rated carriers include Commercial Underwriters, American Reliable, and TOPA.
Brown & Riding
777 S. Figueroa St., Ste. 2550
Los Angeles, CA 90017
Contact: Chris Brown, Barbara McClelland, or Todd Horton
Phone: (213) 452-7060
Fax: (213) 452-7080
Web site: www.brownandriding.com
An E&S broker operating in all states offering up to $50 million in limits. Target markets include construction, automotive, pharmaceutical, property owners, hotels, sporting goods, and biotech. Various admitted and nonadmitted carriers are utilized to place coverage.
Burns & Wilcox, Ltd.
30833 Northwestern Hwy., Ste. 220
Farmington Hills, MI 48334
Contact: Home office for local branch
Phone: (800) 521-1918
An MGA/E&S broker operating in all states except AK, HI, NY and NJ offering limits of up to $25 million on personal and commercial lines umbrellas. GL, monoline CPL, excess auto and excess liability are available. All classes are considered. Various A rated carriers are utilized to place coverage.
Capitol Indemnity Corporation
4610 University Ave.
Madison, WI 53705
Contact: Joel Fait or James C. Schlacks, CPCU
Phone: (800) 964-4454
Fax: (608) 231-2053
Web site: www.capitolindemnity.com
An insurer operating in 37 states offering limits up to $5 million on commercial lines. Target markets include restaurants, child care, assisted living and mercantile risks. GL, property, and workers compensation are also available. Capitol Indemnity is an A+ carrier.
Carnegie Insurance Services, Inc.
17700 Broadway Ave.
Cleveland, OH 44146
Contact: Alan Rubin, Ext. 3206
Dennis Liniman, Ext. 3211
Phone: (800) 362-2411
Fax: (440) 439-5551
E-mail: cisco@stratos.net
An MGA operating in all states offering limits of up to $50 million on personal umbrellas. All classes are considered--standard and preferred, nonstandard, high-profile individuals, entertainers, and professional athletes. Various A rated carriers are utilized to place coverage.
Centurion Corporation
P.O. Box 959
Hanover, NH 03755
Contact: Tom Canfield
Phone: (800) 358-3056
Fax: (603) 643-2740
E-mail: tom@centcorp.com
An E&S broker operating in all states. Limits are negotiable. Fireman's Fund and Chubb are the A rated carriers.
Century Surety Group
P.O. Box 163340
Columbus, OH 43216
Eastern Region: Jim Murphy
Phone: (800) 898-7389
Fax: (614) 895-7036
Western Region: Gene Calahan
6263 N. Scottsdale Rd., Ste. 225
Scottsdale, AZ 85250
Phone: (888) 651-6424
Fax: (480) 348-1254
An insurer operating in all states except MA, ME, NH, NY and RI offering limits of $5 million to $10 million. Classes not written are high-hazard products, large municipalities, heavy medical malpractice, and long-haul trucking. Century Surety Company, Evergreen National Indemnity and Continental Heritage Insurance Company are A rated carriers.
CNA E&S
333 S. Wabash Ave.
Chicago, IL 60685
Contact: Malcolm Aimsle
Phone: (212) 440-2572
An insurer operating in all states on both an admitted and nonadmitted basis. Limits offered are $5 million on personal lines and $15 million on commercial lines. Classes not written are petro-chemical, aviation products, product recall, and construction defect. Columbia Casualty and Continental Casualty are A rated carriers.
Continental/Marmorstein & Malone
P.O. Box 586
Paramus, NJ 07652
Contact: Bill Malone
Phone: (800) 932-0849
Fax: (201) 261-8922
E-mail: bmalone@ca-group.com
Web site: www.ca-group.com
An MGA/E&S broker operating in NJ and NY offering limits of $25 million on primary commercial umbrella with excess umbrella available. Limit on personal umbrella is $20 million. Excess auto and general liability for commercial and excess auto, watercraft, and motorcycle are also written. Target markets include accounts with claims, youthful drivers, high-profile individuals, sports figures, and entertainers. Carriers include General Star, Chubb Custom, Interstate Fire & Casualty, USLI, Gulf Insurance, Essex Insurance, American Equity, Burlington Insurance, United National, Mt. Vernon Insurance and Lexington Insurance.
The Distinguished Programs Group
6 E. 43rd St., 15th Floor
New York, NY 10017
Contact: Carla Vel
Phone: (212) 297-3100
Fax: (212) 297-3132
E-mail: info@distinguished.com
Web site: www.distinguished.com
An MGA and program manager operating in all states offering limits of $10 million to $200 million. Target markets include real estate, hotels, and contractors. Property, CGL, and D&O are also available. Various A rated carriers are utilized to place coverage.
Doran Excess Underwriters, Inc.
P.O. Box 1417
Mechanicsburg, PA 17055
Contact: Ronald Hihn
Phone: (800) 553-6739
Fax: (717) 697-7506
E-mail: doranco@aol.com
An MGA/underwriting manager operating in all states offering limits of $25 million and above. Most classes are considered, including hospitals, nursing homes, medical and non-medical, insurance agents/brokers and TPAs. Various A rated carriers, mostly nonadmitted, are utilized to place coverage.
Entertainment Brokers International
10940 Wilshire Blvd., 17th Floor
Los Angeles, CA 90024
Contact: Bill Cody
Phone: (310) 824-0111
Fax: (310) 824-5733
E-mail: EBI@netwiz.net
A managing agent operating in all states offering limits of up to $10 million. CGL, property, and workers compensation are available. Target markets are entertainment (movie/television), sports (amateur/professional), and leisure. Redland Insurance Company and XL Specialty Insurance Company are the carriers.
Excel Insurance Services, Inc.
301 Oxford Valley Rd., Ste. 402A
Yardley, PA 19067
Contact: Dennis Pellegrino
Phone: (215) 369-2919
Fax: (215) 369-2917
Web site: www.excelins.com
An MGA/E&S broker operating in NJ and PA offering limits of up to $10 million plus. CGL is also written. Scottsdale and United National are the A rated carriers.
The Gorst Company
805 Fairmont Ave.
Glendale, CA 91203
Contact: John Curtin, COO, Personal Lines
Cindy Langbehn, EVP, Commercial Lines
Phone: (818) 507-0900
E-mail: jcurtin@gorst.com
Clangbehn@gorst.com
A general agent/E&S broker operating in CA offering limits of up to $10 million. CPL is also available. Target markets include risks with multiple locations and high-profile individuals. Carriers include Gainsco, Scottsdale, TOPA, and CUIC.
Gray-Stone & Company
275 E. Hillcrest Dr., Ste. 250
Thousand Oaks, CA 91360
Contact: Tami Singer
Phone: (800) 349-7343
Fax: (805) 494-8798
Web site: www.gray-stone.com
An MGA/E&S broker operating in all states offering various limits in excess of $1 million. All classes are considered. Carriers include Fireman's Fund, ACE, TOPA, USLI, General Security, AIG, and Tamarack.
Gulf Insurance Company
125 Broad St., 8th Floor
New York, NY 10004
Contact: Nick Licato
Phone: (212) 291-3000
E-mail: Nlicato@gulfins.com
Web site: www.gulfinsurance.com
An insurer operating in all states, DC, Puerto Rico, and Guam offering limits of up to $500 million, lead or excess for commercial umbrella. Target markets include non-residential contractors, habitational, manufacturing, retail/wholesale, and service. Excluded classes are pharmaceuticals, railroads, and chemical. Gulf Insurance Company, Select Insurance Company, Gulf Underwriters Insurance Company, Atlantic Insurance Company, Gulf Group Lloyd's, and Gulf Insurance Company UK Limited are all A+ rated.
L.E. Harris Agency, Inc.
P.O. Box 8330
Langley Park, MD 20787
Contact: Mark Baldwin
Phone: (301) 439-4700
Fax: (301) 439-5800
E-mail: markbaldwin@leharris.com
Web site: www.leharris.com
An E&S broker operating in DC, MD, and VA offering limits of up to $50 million. Various A rated carriers are utilized to place coverage.
HEATH Insurance Brokers, Inc.
3100 Monticello, Ste. 900
Dallas, TX 75205
Contact: Terry Moody
Phone: (800) 528-5544
Fax: (214) 528-9101
E-mail: tmoody@hibi.com
An MGA/E&S broker operating in all states, U.S. territories, and possessions offering limits up to $200 million plus for commercial risks. Target markets include contractors, manufacturers, transportation, habitational, and real estate risks. Primary and excess are available. Various A rated admitted and nonadmitted carriers are utilized to place coverage.
Hermitage Insurance Company
707 Westchester Ave., Ste. 411
White Plains, NY 10604
Contact: Susan Grant
Phone: (914) 683-8008
Fax: (914) 683-8245
An insurer operating in all states except AK, AR, AZ, CO, HI, ID, ME, MO, NV, NH, NM, OR, UT, VT, WA and WY. Contact for market and limit availability. Hermitage is a B++ rated carrier.
Insurance Innovators Group
P.O. Drawer 969
Glenside, PA 19038
Contact: Tom Murphy or Susan Clifton
Phone: (800) 523-6422
Fax: (215) 886-2482
E-mail: info@iiigroup.com
An MGA/E&S broker operating in CT, DE, MA, MD, ME, NJ, NY, PA and RI offering limits of up to $10 million on both personal and commercial umbrella. CGL, property, commercial auto, and workers compensation are available. Several classes are considered. Various A rated or better carriers are utilized to place coverage.
Jimcor Agencies
15 Ver Valen St.
Closter, NJ 07624
Contact: Coryn Mastowski
Phone: (800) 334-0474
Fax: (201) 784-7901
E-mail: cmastowski@jimcor.com
Web site: www.jimcor.com
An MGA/E&S broker operating in all states offering limits of up to $50 million. Target markets include contractors, manufacturing, retail/wholesale, real estate, trucking, and public transportation. Various A rated or better admitted and nonadmitted carriers are utilized to place coverage.
H.R. Keller & Company, Inc.
1520 Sheridan Dr.
Buffalo, NY 14217
Contact: Rob Martin
Phone: (800) 424-2202
E-mail: rlmartin@kellerandco.com
A general agent and wholesaler operating in NY. Limits will vary by carrier. All classes, standard and nonstandard are considered. Various carriers are utilized to place coverage.
M.J. Kelly Company, Inc.
4415 E. Sunshine Dr.
Springfield, MO 65809
Contact: Sandy Shue, Commercial lines Gary Spurrier, Personal lines
Phone: (800) 725-7211
Fax: (417) 883-7103
Web site: www.mjkelly.com
An E&S broker operating in AR, FL, IL, KS, MO, MS, NE, OK, TN and UT offering limits up to $50 million. All classes are considered. Carriers include United National, Columbia Mutual, Guaranty National, USLI, Reliance, Burlington, and Essex insurance companies.
G.A. Mavon & Company
10 W. Chicago Ave.
Hinsdale, IL 60521
Contact: Jim Skelton, Commercial lines Chuck Lynch, Personal lines
Phone: (877) 426-2866
Fax: (630) 654-4447
E-mail: jims@mavon.comchuck@mavon.com
An MGA/E&S broker operating in IL and IN offering limits of up to $10 million. Excess liability is also written. Carriers include ACE, Scottsdale, Ohio Casualty, RLI, and Mt. Vernon insurance companies.
North Island Facilities, Ltd./NIF Pro
30 Park Ave.
Manhasset, NY 11030
Contact: Dan Mogelnicki
Phone: (800) 892-8892
Fax: (516) 365-7440
E-mail: nifmail@aol.com
Web site: www.nifgroup.com
An MGA and wholesaler operating in all states offering limits up to $100 million on commercial lines and $50 million on personal lines. Target markets include all classes of commercial lines and prominent individuals for personal lines. All supporting lines are available. Various carriers are utilized to place coverage.
Pacific Specialty Insurance Company/McGraw Insurance Services
P.O. Box 40
Anaheim, CA 92815
Contact: Susan Valencia
Phone: (800) 303-5000
Fax: (714) 998-4902
E-mail: svale23567@aol.com
Web site: www.mcgrawgroup.com
An insurer operating in CA currently and all states mid-2001 offering limits of up to $5 million on personal lines. Stand-alone CPL is available. Pacific Specialty is an A rated carrier.
Pennock Insurance, Inc.
P.O. Box 2000
Chadds Ford, PA 19317
Contact: Cindi King, Commercial Lines
Diane Bell, Personal Lines
Phone: (800) 662-5182
Fax: (610) 358-3449
E-mail: mail@pennock-ins.net
An MGA/E&S broker operating in DC, DE, MD, NJ, PA and VA offering limits of $10 million plus. All classes are considered. CGL, property, and D&O are available. Various A rated carriers are utilized to place coverage.
Professional Governmental Underwriters, Inc.
9201 Forest Hill Ave., Ste. 201
Richmond, VA 23235
Contact: Martin Kanipe, CPCU
Phone: (800) 586-6502
Fax: (804) 272-6557
E-mail: mkanipe@pgui.com
Web site: www.pgui.com
An MGA operating in all states offering limits up to $10 million. Target markets include public entities, educational entities, and nonprofit organizations. Package for small public entities is available. Old Republic Insurance Company is A+ rated.
RLI Insurance Company
9025 N. Lindbergh Dr.
Peoria, IL 61615
Contact: Becky Lundberg, Director of Marketing, Personal Lines
Phone: (309) 692-1000, Ext. 5512
E-mail: becky_lundberg@rlicorp.com
Web site: www.rlicorp.com
Dennis Drees, Commercial Lines
E-mail: ddrees@rlicorp.com
An insurer operating in all states and DC offering limits of up to $5 million on personal lines and $50 million on commercial lines. Personal lines have a self-underwriting application. CGL, commercial auto, and employers liability are available. RLI Insurance Company and Mt. Hawley Insurance Company are A rated carriers.
Roush Insurance Services, Inc.
P.O. Box 1060
Noblesville, IN 46061
Contact: Gail Pierce
Phone: (800) 752-8402
Fax: (317) 776-6891
E-mail: gail.pierce@roushins.com
Web site: www.roushins.com
An MGA operating in IL and IN offering limits of up to $5 million on personal lines and $20 million on commercial lines. Most classes are considered except surgeons and risks with DUIs. CGL, commercial property and auto are available. Carriers include Scottsdale, Century Surety, Evanston, and Associated International Insurance, all A rated or better.
Robert A. Schneider Agency
5620 Smetana Dr., Ste. 350
Minnetonka, MN 55343
Contact: Bob Raymo or Sue Karkhoff
Phone: (952) 938-0655
Fax: (952) 938-0701
An MGA/E&S broker operating in IA, MN, ND, SD and WI offering limits up to $50 million. All classes are considered. CGL, property, excess and buffer layers are available. Carriers include Fireman's Fund and Interstate.
S.H. Smith & Company
41 N. Main St.
West Hartford, CT 06107
Contact: Steve Cane
Phone: (800) 356-0168
E-mail: stevec@shsmith.com
An MGA/E&S broker/program administrator operating in all states offering limits of up to $250 million. Target markets include habitational, office buildings, restaurants, schools, and roofers. Various A rated carriers are utilized to place coverage.
Swett & Crawford Group
21650 Oxnard St., Ste. 1600
Woodland Hills, CA 91367
Contact: Art Roderick
Phone: (617) 757-3300
Web site: www.swett.com
An MGA operating in all states providing limits up to $50 million on commercial umbrella. Contact MGA prior to submitting risk or contact local Swett & Crawford office. A rated or better carriers are utilized to place coverage.
TOPA Insurance Company
1800 Avenue of the Stars, 12th Floor
Los Angeles, CA 90067
Contact: Paul Charette, Personal Lines
Larry Esposito, Commercial Lines
Phone: (800) 949-6505
Fax: (310) 286-1382, Personal Lines
Fax: (310) 286-1905 Commercial Lines
Web site: www.topains.com
An insurer operating in CA and NV offering limits of up to $5 million on personal lines and $10 million on commercial lines. Excess liability and buffer layers are available. Classes not written for commercial risks are chemicals, pharmaceuticals, pollution, explosives, Fortune 1000, or high hazard. TOPA Insurance Company is an A rated carrier.
U.S. Risk Group, Inc.
10210 N. Central Expwy., Ste. 500
Dallas, TX 75231
Contact: Monty Stringer
Phone: (800) 232-5830
An MGA/E&S broker operating in all states offering limits of up to $50 million. Target market is commercial lines. Supporting coverages are available. Various carriers are utilized to place coverage.
Unity Risk Partners Insurance Services, Inc.
3021 Citrus Circle, #220
Walnut Creek, CA 94598
Contact: Maitland S. Dimock, Director of Marketing
Phone: (925) 942-4020
Fax: (925) 942-4021
E-mail: maitland@unityrisk.com
Web site: www.unityrisk.com
An underwriting manager operating in all states except AK and HI offering limits of up to $10 million. Target markets include manufacturers and habitational. Classes not written are medical malpractice and chemical risks. Excess auto and excess following form CGL are available. A+ carrier is utilized to place coverage. *