RelianceDirect, a division of Reliance Insurance Group, has begun offering personal auto insurance direct to consumers in Connecticut. It will soon do so in Pennsylvania also. "In the near term" the company plans to introduce direct marketing of auto insurance in Illinois, New York, Florida, California, Ohio, Arizona, Missouri and Washington. By the year 2000 it expects to be selling auto insurance direct across the country.
"Consumers can expect to see savings of up to $250 per policy," said Larry Sundram, president of RelianceDirect.
The company offers standard personal auto insurance through direct mail, phone, fax and personal computer. Those who access the company's Web site (www.reliancedirect.com) can fill out an on-screen quotation request and get rate quotes overnight viae-mail.
Among the payment options offered by RelianceDirect is over-the-phone payment by credit card.
The company also will provide auto products to small employers and affinity groups through select agents.
Royal covers loss of construction income
Royal Insurance U.S. introduced an endorsement for the construction industry that covers a project owner for loss of income which results from a delay in completing a covered construction project if the delay is due to a covered loss. Coverage also is provided for extra expense, such as overtime pay, incurred to speed project completion or otherwise reduce the business income loss.
Losses covered under the endorsement include those occurring at the jobsite, or while covered construction materials, equipment or supplies are in transit or at temporary locations. The business income coverage can be written with various coinsurance and deductible options.
Other commercial inland marine coverages that Royal provides for the construction industry include: builders risk, installation, contractors equipment, leased equipment, riggers liability and the Inland FLEX coverage form and related endorsements.
CNA offers package for community banks
CNA Financial Insurance, a division of CNA, introduced a property-casualty insurance package for banks and thrifts with assets of less than $1 billion. A financial institution can purchase the complete package or select the coverages it wants using an unbundled approach.
The coverages can include directors and officers liability, a financial institutions bond, commercial property, general liability, inland marine, auto, boiler and machinery, employment practices liability and workers compensation.
Among the potential liability risks faced by smaller banks are those involving the use of outside service firms for data handling and funds processing functions, noted Tom Beach, underwriting vice president at CNA Commercial Insurance. "Other examples of risk include items in transit, especially international wire transfers, and the kidnap/ransom of an officer," Beach said.
More information is available by calling: (800) CNA-6241.
Hartford's dentists' package includes equipment breakdown
The Hartford has added equipment breakdown coverage to the dentists insurance package which it offers in conjunction with The Medical Protective Company. The equipment breakdown coverage is designed to protect against loss of revenues when a dentist's office has to close as a result of the failure of professional equipment or air conditioning equipment.
Equipment breakdown coverage applies whether the breakdown is due to an equipment malfunction or an outside phenomenon such as a power surge.
In addition to the new systems breakdown coverage, The Package--which Hartford introduced jointly with The Medical Protective Company last year--includes property, general liability, workers compensation and dental malpractice. It includes coverage for patients' charts; x-rays and impressions; the dental library and valuable papers; up to 12 months of business interruption; floods and earthquakes; and legal expenses.
The product currently is available in Arkansas, Florida, Georgia, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Michigan, Minnesota, Missouri, Nebraska, New Jersey, New Mexico, North Carolina, Ohio, Pennsylvania, Rhode Island, South Carolina, Tennessee, Texas, Virginia and Wisconsin. The systems breakdown coverage is not yet available in Texas, New Mexico or Louisiana.
General Casualty introduces small business policy
General Casualty Insurance Companies introduced a new insurance program called Cornerstone1 for small to mid-sized businesses. Eligible businesses include retailers, wholesalers, offices and service operations in the company's 11 Midwestern states of operation.
The policy offers both built in and optional building and business personal property and liability coverages. It provides automatic coverage for loss of business income.
Cornerstone1 also features a basket coverage endorsement, called Cornerstone Plus, which provides coverage extensions for the following six exposures under one blanket limit of insurance:
* minicomputer property, electronic data processing equipment, component parts, data and media;
* recharging of fire extinguishers or systems used to fight a fire;
* outdoor signs;
* fire department service charge;
* accounts receivable;
* valuable papers and records.
The insured who has a covered loss may allocate the blanket limit of Cornerstone Plus to any combination of the coverages provided. If the insured has purchased separate coverage for any of these exposures, the Cornerstone Plus blanket limit applies in addition to the specific limit purchased. The endorsement applies separately to each covered location and will extend to newly acquired premises.
Chubb offers liability policy for software developers
The Chubb Group introduced a liability policy that protects technology businesses against suits alleging copyright and trademark infringement, defamation of character, libel and similar actions. Such suits arise out of the creation, production or distribution of software products.
Copyright or trademark infringement claims resulting from the content of the software are covered, as are claims based on numerical source and object codes--the method by which computers express, store, process and retrieve content.
The Chubb product, called Multimedia Liability Policy, is designed to address both "multimedia" and "non-multimedia" activities of technology companies and thereby eliminates the need to buy commercial general liability coverage from one carrier and multimedia liability from another.
Thomas R. Cornwell, a vice president in the Technology Insurance Group of Chubb & Son, said, "The widespread incorporation of audio recordings and visual images--including radio and TV broadcasts, musical recordings, icons, artwork and photographic images into software products is causing a magnification of copyright and trademark infringement vulnerabilities for software developers, Internet service providers and other information technology companies."
And, Cornwell warned, "The Internet exacerbates the problem by providing greater reach to a larger, worldwide audience."
Other features of Chubb's Multimedia Policy include:
* advertising injury and personal injury coverage, which goes beyond the standard general liability contract, for both publishing and nonpublishing activities.
* availability on a claims-made or occurrence basis.
* responds to lawsuits anywhere in the world.
* limits of up to $10 million.
Travelers unit writes medical products liability
Travelers Specialty, a division of Travelers Property Casualty, has broadened its eligible classes for general liability and products liability to include manufacturers and distributors of medical products. Among the new higher hazard classes being targeted are risks associated with clinical trial exposures, personal protective shields (Class I devices), bone cutting and bronchial tubes (Class II devices) and endometrial equipment (Class III devices).
Coverage can be written for all of an insured's products or for selected products--using either a claims-made or an occurrence form. Prior acts coverage is available.
Policy limits are up to $2 million/$2 million, with higher limits available through Travelers Specialty's umbrella and excess facility. The minimum premium is $15,000; the minimum self-insured retention is $5,000. Coverage is offered on A-XV admitted paper but may be available on a nonadmitted basis in certain states.
The new coverage is available in New England and upstate New York through Travelers agents and approved wholesale brokers. In other states it is distributed through approved wholesale brokers.
The policy may be written over a self-insured retention (SIR) where claims are handled by a third-party administrator.
For more information, contact Paul Semanski, director of marketing, Travelers Specialty: (860) 277-9878.
Hanover introduces home business coverage
The Hanover Insurance Company introduced a homeowners endorsement for home-based businesses. The endorsement, called The Home Entrepreneur Program, provides the following coverages:
* Business income--up to 12 months, including the cost of renting temporary space and equipment;
* business property;
* business personal property--at replacement cost with limits equal to 50% of the dwelling limits. Off-premises limits are 25%.
* business general liability--with limits from $100,000 to $500,000.
The policy will be available in the following 15 states: Arkansas, Connecticut, Florida, Georgia, Illinois, Louisiana, Maine, Massachusetts, New Hampshire, New Jersey, New York, Oklahoma, Tennessee, Virginia and Wisconsin.
More information is available from Hanover's regional offices or from John Heffernon, director of product development: (508) 855-2105.
ECS policy covers lenders' environmental risks from real estate holdings
ECS Underwriting introduced an environmental liability program to protect the real estate holdings of lenders. The program, called ELLIPSE (Environmental Liability Loss Insurance Protection for Security Estates) provides first- and third-party pollution coverage and mortgage impairment coverage for lenders who either hold title, operating interest or contingent ownership of property.
Among the environmental risks faced by financial institutions, according to Scott Britt, ECS vice president, are Superfund liabilities and liabilities under state environmental laws.
"As an owner or operator of a contaminated facility, a lender may face obligation to remediate environmental problems associated with the property they now own or manage," said Britt.
The ECS policy, administered through Reliance National of New York, covers third-party legal claims, remediation expense, legal defense and decrease in property value due to pollution conditions. A single ELLIPSE policy can cover numerous locations or a single site.
The claims-made policy is available with liability limits up to $40 million and a policy period of up to five years. It is available in all 50 states on a nonadmitted basis. The minimum premium is $10,000.
Covered locations are subject to an environmental risk assessment survey which involves a site visit by an approved consultant. For sites with multiple insured locations, one visit is made to the corporate headquarters to review available records. The cost of the survey typically is paid for by ECS. *
©COPYRIGHT: The Rough Notes Magazine, 1997