In the 1998 35th edition of The Insurance Marketplace, Rough Notes' directory of excess, surplus and specialty lines, the first listing is "abortion clinics professional liability" and 165 pages later, "x-ray and medical laboratory professional liability" is profiled. In all, 158 various profes-sional liability coverages are listed making this the largest type of coverage among the more than 200 coverages and programs. This is quite a different picture from years ago when underwriters, if they would even engage in a conversation regarding the subject, were less than enthusiastic about professional liability risks. This was easy to understand, as the expertise in this field was limited. The theory of being unable to settle or defend suits without the written consent of the insured was not enticing to underwriting or claims folks. In other words, it was a "stepchild" in many companies. Today, the premium base is much greater, thanks to our litigious society. And, not surprisingly, there are 56 listings in The Insurance Marketplace for underwriters that want lawyers professional liability.
To get to this place, insurers addressed the concerns with research into policy wording, underwriting guidelines, and pricing issues. Industry groups, such as PLUS, the Professional Liability Underwriting Society, established training and suggested guidelines. About seven years ago, a new designation of Registered Professional Liability Underwriter was created. It is a five-part program that involves intense study. Thousands have participated in this training with many being confirmed as RPLU.
The good news for insureds is that available coverage and attractive premiums are now the norm rather than the exception. According to Robert A. Baldwin, executive v.p. of Baldwin Sadler Corporation in Audubon, Pennsylvania, "Miscellaneous professional liability is in the midst of a hyper market. I see no 'cooling off' of the pricing frenzy." This reflects the general view of today's market, noting that the number of polices written is increasing dramatically. Reasons include awareness on the part of the public as they read headlines of large judgments.
Prospective professions include the medical field, morticians, architects, real estate agents, surveyors, home page designers, insurance agents, travel agents, landscape architects, personal trainers and social and welfare workers, to name a few.
Limits available will vary by carrier and profession but $100 million or higher with excess is not difficult to find. Both claims-made and occurrence forms are utilized. Note that the Lloyd's forms will contain different policy language and definitions from U. S. carriers. Combining premises and professional liability policies where possible is recommended as where one stops and the other picks up may be vague.
Some states have passed laws limiting malpractice liability. Some states have established Joint Underwriting Associations or compensation funds financed through surcharges of premium paid by doctors and hospitals to compensate for losses above policy limits. The policies intended for the medical profession will contain wording of "malpractice"; whereas "accident" does not appear when addressing attorney's coverage. Coverage for insurance agents, graphic designers and tour operators, for instance, will state "errors and omissions." It is important to study the insuring agreements to determine where coverage is to be afforded. What service or lack of rendering is covered?
Look for an experienced MGA when placing your client's coverage. It can make a big difference in obtaining a quality market and an attractive price. Find out whether defense costs fall inside or outside of the policy limits. Does it make a difference to your client whether a carrier is admitted or non-admitted? Some organizations stipulate that they will only consider admitted carriers. As you know, this does not necessarily mean that the non-admitted insurer is inferior...it may be that an insurance agent or attorney is "rendering a professional service" with the client's best interest in mind (and with their own E&O rates in mind).
The following is a list of markets that responded to our survey. Check the states of operation, target markets, and limits available from each when using this marketing tool.
Arlington/Roe & Co., Inc.
* P.O. Box 80803
Indianapolis, IN 46280
Contact: Al Grau, Executive Vice President
Phone: (800) 878-9891
Fax: (317) 259-4106
An MGA operating primarily in the Midwest offering limits of $100,000/$10 million on professional liability. Carriers include Admiral, CNA, Evanston, Lloyd's, Royal Specialty, Chubb Custom, ERMA, General Star Indemnity, Northland, and Tudor. They also write general liability.
Baldwin Sadler Corporation
* P.O. Box 7012
Audubon, PA 19407
Contact: Judith Goebner
Phone: (610) 650-9100, Ext. 124
Fax: (610) 650-9300
A national managing underwriter offering coverage for over 60 specific professional classes in all states except Maine and Minnesota. Classes not written include medical, architects, engineers, accountants, insurance agents and certain high-tech fields. Market is Cigna Property & Casualty.
Black/White & Associates
* P.O. Box 30968
Oakland, CA 94604
Contact Jennifer Weik
Phone: (800) 966-6568
Fax: (800) 427-4881
This MGA/E&S broker has limits of $1 million occurrence/$2 million aggregate with excess of $10,000,000 available in most states. It utilizes Safeco and Ace USA. Target markets include social services, rehabilitation facilities, homes for mentally/physically disabled, and vocational training facilities.
Bohrer, Croxdale, & McAdoo, Inc.
* P.O. Box 2760
Springfield, MO 65801
Contact: Vicki Cota
Phone: (800) 779-2550
Fax: (888) 869-2550
Operating in AR, KS, IL, MO and OK. This E&S broker has available markets for most classes except preferred physicians. They do write distressed physicians. Limits up to $25 million are possible depending on the risk. Various admitted and non-admitted carriers are used.
Bristol Management Group, Ltd.
* 366 Veterans Memorial Hwy.
Commack, NY 11725
Contact: Janet M. Wesche, Executive Vice President
Phone: (516) 543-5010
Fax: (516) 543-5138
An MGA with several "A" rated carriers in all 50 states. Limits of $1 million/$3 million are written for most types of PL except physicians and lawyers.
Central Insurex Agency, Inc.
* 800 S. Washington St.
Van Wert, OH 45891
Contact: Kurt Muntzinger
Phone: (800) 736-7131
Fax: (800) 736-7026
E-mail: kurtm@central-insurance.com
Limits up to $2 million are written by this E&S broker/wholesaler with various "A" rated carriers in IL, IN and OH with any licensed agent. Target markets include computer consultants/software design; EDP processing firms; environmental consultants; advertising firms; book publishers; magazine publishers; newspapers; printers and Web site developers, to name a few.
Delaware Valley Underwriters Agency, Inc.
* 420 S. York Rd.
Hatsboro, PA 19040
Contact: Rita Haneburg/Judy Klingerman
Phone: (800) 388-0215
Fax: (215) 672-7983
E-mail: info@dvua.com
Web site: www.dvua.com
Operating in DE, MD, NJ and PA as an E&S broker and utilizing several carriers to provide coverage for most types of professional liability with limits up to $10 million.
Doran Excess Underwriters, Inc.
* P.O. Box 1417
Mechanicsburg, PA 17055
Contact: Ronald Hiln
Phone: (800) 553-6739
Fax: (717) 697-7506
An MGA operating in all 50 states providing excess professional liability for all classes except accountants and primary for insurance agents and brokers. Limits of $15 million on primary insurance and $25 million on excess professional liability are placed with an "A" rated VIII rated carrier.
Executive Risk Management Associates
* 82 Hopmeadow St.
Simsbury, CT 06070
Contact: Sean Fitzpatrick
Phone: (860) 408-2000
Fax: (860) 408-2288
E-mail: info@execrisk.com
Web site: http://www.execrisk.com
Target markets include all financial institutions, lawyers, accountants, HPL, media and insurance agents. Limits are available up to $50 million in all states. Both ERII and ERIC are "A" rated carriers.
Five Star Managers, LLC
* 118 S. Clinton St., Suite 700
Chicago, IL 60661
Contact: Kevin Ottley,
Senior Vice President
Phone: (312) 879-1079
Fax: (312) 879-1335
Web site: www.5starmgrs.com
Limits of $20 million are available in all states for professional liability risks in most classes including lawyers, architects and engineers and program business. Intellectual property, EPL, D&O and commercial fidelity can also be provided through Lloyd's of London.
Gateway Underwriters Agency, Inc.
* 755 S. New Ballas Rd.
St. Louis, MO 63141
Contact: Barb Smeltz; Pat Daugherty, CPCU;
Carl Bartlotti, CPCU
Phone: (800) 325-7652
Fax: (314) 567-4552
Providing markets in AR, IA, IL, KS, MO and NE. This E&S broker and MGA can also assist agents throughout the Midwest. Professional liability products include EDP/computer consultants and several low minimum premium products for smaller miscellaneous E&O classes. Carriers include Lexington Insurance Co., Executive Risk, United National, Gulf Insurance Co., General Star Indemnity, American Equity, Tudor Insurance Co., Lloyd's Underwriters, Scottsdale Insurance, U.S. Liability Insurance Co., Mt. Vernon Fire and Employers Re-First Specialty Insurance Co.
Ian H. Graham, Inc.
* 16130 Ventura Blvd., Suite 100
Encino, CA 91436
Contact: Kevin Davis
Phone: (800) 621-2324
Fax: (818) 905-3548
An MGA that specializes in D&O for nonprofit community associations with limits from $1 million to $10 million operating in all 50 states utilizing the Chubb Group as a carrier.
Gray-Stone & Company
* P.O. Box 889
Woodland Hills, CA 91365
Contact: Robert Pechloff/Elizabeth Glenn
Phone: (818) 593-3333
Fax: (818) 593-3650
An MGA/E&S broker that operates in all 50 states. Gray-Stone & Company provides coverages for professional liability on physicians, surgeons, medical groups and other health care providers and facilities. Markets include Reliance National, Admiral Insurance Company, American International, Carolina Casualty, Executive Risk, Legion Insurance, Evanston Insurance, London Market and Zurich American Specialties. Limits will vary with the class of business up to $25 million.
Great American Insurance Company
* Executive Liability Division
1515 Woodfield Rd., Suite 850
Schaumburg, IL 60173
Contact: Mike Levins
Phone: (847) 330-6750
Fax: (847) 330-6890
Provides coverages in all states with limits of up to $25 million. Great American also writes D&O, EPL and insurance company professional liability.
H & W Underwriters (Agency), Inc.
* P.O. Box 1085
Shawnee Mission, KS 66222
Contact: Bruce R. Pouppirt, Nonprofit Association Professional Liability;
Gloria Darr, Labor Union Liability
Phone: (800) 616-9475
Fax: (913) 432-1706
An underwriting manager writing in most states and open to most classes except medically related risks. Limits for nonprofits are $5 million and $2 million for labor unions with coverage being placed with Safeco Insurance Co. and ULICO, both "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
Doing business in DC, DE, MD, VA, and WV, as an MGA/E&S broker,
L. E. Harris writes up to $5 million on a variety of risks including programmers, software developers, systems analysts, methadone clinics and architects using various "A" rated carriers.
Jimcor Agencies
* 15 Ver Valen St.
Closter, NJ 07624
Contact: Jennifer Dumont
Phone: (201) 784-8900
Fax: (201) 784-7901
Web site: www.jimcor.com
An MGA/E&S broker offering professional liability on most professional classes including malpractice. Primarily operating in DE, MD, NJ, NY and PA, they consider risks from all states placing business with a variety of "A" rated companies with limits up to $5 million.
Market Finders Insurance Corporation
* P.O. Box 6549
Louisville, KY 40206
Contact: Karen Cornet, Non-medical; Dennis Watts, Medical
Phone: (800) 626-5660
Fax: (502) 426-7970
E-mail: iinfo@mfic.com
Web site: www.mfic.com
Operating as an MGA for non-medical in IN, KY, NC, OH, PA, SC, TN and WV. Offering medical in most other states with limits up to $5million. Carriers include Evanston Insurance, Western World, USLI, United National, Tudor and Employers Re.
Media/Professional Insurance
* 2300 Main St., Suite 800
Kansas City, MO 64108
Contact: Marcia Jenson
Phone: (816) 471-2404
Fax: (816) 471-6119
E-mail: marketing@mediaprof.com
Web site: www.mediaprof.com
An MGA offering coverage for computer/IT, Internet, testing labs, mortgage brokers, executive search firms, employee placement firms, graphic designers, consultants (not environmental or financial), pr/marketing firms, research organizations and real estate agents with limits up to $15 million. Gulf Insurance Group "A+" rated carrier is used for a market in all states, DC and Puerto Rico. They will also consider Y2K exposures.
National Insurance Professional Corporation
* 1040 N. E. Hostmark, Suite 200
Poulsbo, WA 98370
Contact: Barry Clipsham
Phone: (800) 275-6472
Fax: (360) 697-3688
E-mail: insurance@nipc.com
Web site: www.nipc.com
As a program administrator, NIPC has coverages available in Washington for lawyers, dentists in ID, OR and WA, insurance agents in ID, OR and WA, accountants in various states and architects/
engineers nationwide. Carriers are "A" rated; limits will vary by class and carrier.
North Island Facilities, Ltd./NIF Services
* 30 Park Ave.
Manhasset, NY 11030
Contact: Michael Orlando, President
Phone: (516) 365-7440
Fax: (516) 365-7392
E-mail: nifmail@aol.com
An MGA/E&S market doing business in the lower 48 states offering $25 million in limits for various risks including D&O and using several "A" rated companies.
Pennock Insurance, Inc.
* P.O. Box 2000
Chadds Ford, PA 19317
Contact: Cindi King or
Roberta Ferarris
Phone: (800) 662-5182
Fax: (610) 358-3449
This MGA operates in DE, MD, NJ and PA. Classes of business not written are in the medical field. Various carriers provide limits of $1million/$1 million and umbrella limits up to $10 million.
Philadelphia Insurance Companies
* One Bala Plaza, Suite 100
Bala Cynwyd, PA 19004
Contact: James J. Maguire, Jr.
Phone: (800) 759-4961
Fax: (610) 617-7940
Philadelphia Insurance writes in all 50 states and provides related coverages such as D&O, duty to defend, and fiduciary liability.
Prime Insurance Syndicate, Inc.
* P.O. Box 711148
Salt Lake City, UT 84171
Contact: Rick Lindsey, President/CEO
Phone: (800) 257-5590
Fax: (801) 944-3254
311 S. Wacker Dr., 33rd floor
Chicago, IL 60606
Phone: (800) 456-4576
Fax: (312) 408-8081
Prime syndicate will consider all classes of professional liability in 39 states for limits of $1 million/
$2 million using INEX and Prime.
Professional Risk Co.
* 600 University St.
2501 One Union Square
Seattle, WA 98101
Contact: Pat Campbell
Phone: (206) 621-8808
Fax: (206) 682-9176
Writes business in all states but MA, TX and VT. This MGA places limits up to $5 million/$5 million with Fireman's Fund (admitted) and Fireman's Fund of Ohio (non-admitted). Target markets are up to 1,000 employees. Classes not written include law firms, employee leasing firms, hospitals and municipalities.
Professional Underwriters Liability Insurance Co.
* 11150 Olympic Blvd., Suite 1150
Los Angeles, CA 90064
Contact: Steve Freedman
Phone: outside CA (800) 537-7362, inside CA (310) 966-9406
Fax: (310) 966 9416
E-mail: bwisa@ix.netcom.com
Writing in all states except KS, MA, NY, and RI, this MGA specializes in the health care field only, with two "A" rated carriers, Public and TDC. Limits include $300,000 primary and lower accompanied with $1 million/
$1 million excess.
Roush Insurance Services
* P.O. Box 1060
Noblesville, IN 46061
Contact: Gail Pierce
Phone: (800) 752-8402
Fax: (317) 776-6891
An MGA/E&S broker providing coverages through Acceptance Indemnity, American Equity, Scottsdale, and Tudor in IL and IN. Most cases written except nurses, physicians, real estate agents, inspection firms, and financial institutions. Minimum premium is $1,000. Limits are $1 million primary with higher limits available through excess or umbrella.
Victor O. Schinnerer & Co.
* Two Wisconsin Circle
Chevy Chase, MD 20816
Contact: Mary Jefferson
Phone: (301) 961-9800
Fax: (301) 951-5444
E-mail: info@schinnerer.com
Web site: www.schinnerer.com
As an underwriting manager, Schinnerer provides markets in all 50 states, the Virgin Islands, and Puerto Rico for various professional liability risks. Companies and limits will vary with the profession.
Southeast Underwriting Group, Inc.
* 10 Fairway Dr., Suite 204
Deerfield Beach, FL 33441
Contact: Alan Ginden
Phone: (800) 648-1389
Fax: (954) 698-9978
U.S. Liability is the carrier utilized by this MGA to write limits up to $5million in all 50 states.
Tennant Risk Services, Inc.
* City Place II, 185 Asylum St.
Hartford, CT 06103
Contact: Jim Fitzsimmons
Phone: (860) 527-9717
Fax: (860) 527-2438
E-mail: jfitsimmons@conning.com
Web site: www.tennant.com
A national MGA/E&S broker that entertains all classes of professional liability to which GL and EPL may be added. Limits vary by operation. Among the carriers are Northland, Lloyd's of London companies, Shand, Tudor, AIG, Gulf and Executive Risk.
Tri-City Brokerage, Inc.
* 50 California St., Suite 2000
San Francisco, CA 94111
Phone: (415) 986-5050
Fax: (415) 986-5004
Tri-City Brokerage of Illinois, Inc.
* 118 S. Clinton St., Suite 400
Chicago, IL 60661
Phone: (312) 876-1414
Fax: (312) 876-1335
Tri-City Brokerage of The Southeast, L.C.
* 1601 Forum Place, Suite 700
West Palm Beach, FL 33401
Phone: (561) 712-0008
Fax: (561) 712-9304
Tri-City Brokerage, Inc.
* 10 Universal City Plaza,
Suite 800
Universal City, CA 91608
Phone: (818) 509-7300
Fax: (818) 509-7350
Tri-City Insurance Brokers, Inc.
* 150 Motor Parkway, Suite 200
Hauppauge, NY 11788
Phone: (516) 273-7700
Fax: (516) 273-8732
Tri-City Insurance Brokers, Inc.
* 110 Williams St., 26th floor
New York, NY 10038
Phone: (212) 732-1360
Fax: (212) 619-5202
Web site: www.tricityins.com
This E&S broker maintains over 30 "A" rated carriers to write professional liability in all 50 states, over $100 million in limits available. Target markets include the technology classes virus/hacker/crime, media and D&O. *
©COPYRIGHT: The Rough Notes Magazine, 1998