Ten years ago, Rough Notes featured an article discussing the lack of markets available for municipalities, especially standard carriers. In the course of our research preparing for this article, we uncovered over 45 markets doing business in from one state to all fifty.
How about pricing? One MGA gave the opinion that, "It is the soft market times ten."
Sheila Warner, president of Millennium Insurance Group which writes risks in six southeastern states, said that municipalities that have carried self-insured retentions of $100,000 to $250,000 for five to ten years are requesting deductibles to attach at those same levels to obtain lower premiums. By attaching deductibles, the municipalities gain in another area as well: They are no longer required to set aside funds to support future claims.
One reason why insuring markets look favorably on governmental entities is the involvement and efforts of the risk managers, safety directors and loss control departments who are taking a proactive approach in addressing potential problems. Carriers, MGAs and risk managers are working as a task force, holding quarterly claims reviews to identify trouble spots. There is also a hands-on approach regarding safety seminars involving department heads of groups such as parks and recreation, DOT and sanitation to focus on solutions to minimize future losses.
Coverages are readily available for standard general liability limits to $25 million and property values to $200 million. Public officials liability, law enforcement, and educators legal liability, with limits of $10 million-plus are being offered.
General liability can be placed on claims-made or occurrence forms. If you are replacing a claims-made policy, be sure to obtain coverage that includes prior acts. Admitted and nonadmitted facilities will depend on the carrier and where the risk is located.
Population will determine rating factors and which markets will entertain writing your prospect. Some markets will target municipalities with populations below 250,000 while others target those with populations above 250,000. Some focus on municipalities with populations below 100,000.
Categories of risk include cities, towns, villages, townships, counties, school districts and community colleges to name a few. Within that group you will encounter landfills, airports, waste and water treatment, coroner's office, air and noise pollution, fire and police departments and parks and recreation.
Federal, state and local laws abound in this class and must be addressed with the proper coverages such as professional liability, employment practices liability, and public officials liability. Policies should be tailored to protect your insured from areas contained in the Civil Rights Act of 1991 (discrimination), Americans with Disability Act, Age Discrimination In Employment Act, the EPA Clean Air and Water Acts and Conservation and Recovery (Superfund).
Two methods are prevalent for governments to obtain coverages--the bid system and agent/broker assignment. The bid system focuses more on pricing than on working to furnish not only a premium that is attractive but to bring the broadest coverages along as well. When you are in one of the above situations, it is imperative that you secure as much information about the expiring policy as possible. Is moonlighting covered under law enforcement? Does the general liability policy exclude back wages? Does the insured have the right to select counsel? What are the exclusions pertaining to any city-sponsored events such as festivals, street fairs and 10K runs? Risk managers may want separate event coverage so as not to jeopardize loss ratios regarding the package policy. In fact, prospecting events for municipalities has been the door opener for some agents to penetrate this market.
These markets have tremendous capacity now. Coverages are becoming more available and broader in scope. Some will offer three-year guarantees based on loss ratios. Loss control service at no charge is another perk. It would appear that now would be a good time to throw your hat in the ring and run for the position of incumbent agent. The following markets have responded to our survey and have indicated they can provide some of all coverages related to governmental entities. Please note coverages, states available and risks not acceptable.
American Security Underwriters An MGA offering GL limits to $5 million; $100 million on property; excess available. Various carriers are used based on size of risk, class, and exposure. Operating in all states and providing GL, property, WC, excess WC, public officials liability and law enforcement liability.
* Contact Abe Snyder, EVP, 111 John Street, 27th Fl., New York, NY 10038, Telephone (212) 285-5522, Fax (212) 619-3818
Bristol Management Group, Ltd., An MGA writing in all states for public officials, law enforcement, auto liability and physical damage, WC, and school districts. GL limits $1 million; property limits $250,000. All carriers are A-rated.
* Contact Arthur E. Torrington, P.O. Box 605, Closter, NJ 07624
Telephone (201) 750-8700, Fax (201) 750-8711
Burns & Wilcox, Ltd., is an E&S broker with branch offices across the U.S., offering most coverage in this class in all states except AK, HI, ME and NY.
* Contact National Corporate Office, 220 Kaufman Financial Center 30833 Northwestern Highway, Farmington Hills, MI 48334, Telephone (800) 521-1918, Fax (248) 932-9046
CommonWealth Professional Group operates in DE, ME, PA, TN and WV utilizing markets at Reliance, Gulf, Coregis, Travelers and Star. All municipality risks are available except electrical utilities with $25 million on primary and property as needed.
* Contact Joseph Maurer, President, or Patricia Farer 133 N. 23rd St., Mt. Penn, PA 19609-1915, Telephone (610) 370-1200 or (888) 852-5203, Fax (610) 370-2779, Web site: www.cwpg.com
Coregis is an insurance carrier that provides public officials liability on an occurrence basis and primary casualty limits up to $10,000,000 in all 50 states. Risks include cities, towns, public authorities such as airports, housing, fire transit, road, ports, park stadiums and boards.
* Contact Thomas R. Eisenhart, 181 W. Madison, Ste. 2400
Chicago, IL 60602, Telephone (312) 849-5125
Delaware Valley Underwriting Agency is a GA/E&S broker providing markets in CA, FL and TX for government entities and municipalities with various carriers.
* Contact Tony Saltzman, DVUA, 420 S. York Rd., Hatsboro, PA 19040
Telephone (800) 388-0215, Fax (215) 443-3500, E-mail: info@dvua.com
Web site: www.dvua.com
Gateway Underwriters Agency markets in AR, IA, IL, KS, MO, SD and WI for professional liability in police and law enforcement, ambulance/EMTs, public officials, school boards, and educators liability. Companies utilized are Scottsdale, National Casualty, Western World, Tudor, United National, Hartford, St. Paul RE, and Lexington.
* Contact Carl H. Bartlotti, CPCU, 755 S. New Ballas Rd., Ste. 130 St. Louis MO 63141, Telephone (800) 325-7652, Fax (314) 567-4552
Go Pro Underwriting Managers utilizes Scottsdale or its affiliates for public entities, law enforcement, school boards, fire departments, health-related services, 911 operations, and special events. It provides coverage in 50 states. Liability limits are $500,000/$1million or $1 million/$2 million. Property up to $25 million per location. Professional liability for public officials/school boards on a claims-made, and law enforcement either occurrence or claims-made.
* Contact Ted Joyce, Director of Agency Development, 7401 Beaufort Springs Dr.,
Ste. 400, Richmond, VA 23225, Telephone (888) OK GOPRO, Fax (800) 972-5345
E-mail: info@gopro.com, Web site: www.gopro.com
Independent Insurance Wholesalers, Inc., functions as a GA and E&S broker in AK, CA, OR and WA, writing law enforcement, educators legal liability and EPL as well as general liability and property coverages. Carriers are Western World, Agriculture Excess Surplus, Royal Surplus Lines, Coregis, Tudor, and Executive Risk.
* Contact Bob Stahl, 722 S.W. 2nd Ave., Ste. 340 Portland, OR 97204
Telephone (503) 224-1956, Fax (503) 224-3010, E-mail: Bob@iiw.com
Web site: www.ii@iiw.com
International Excess Agency, Inc., is an E&S broker marketing in IL, IN, KY, OH, TN and WV with A-rated carriers, providing public officials, law enforcement and school boards general liability limits to $10 million and property limits of $1 million.
* Contact Marc Pender/Joy Haviland, 5001 Mayfield Rd., Ste. 109 Lyndhurst, OH 44124, Telephone (800) 937-3497, Fax (216) 291-1382
E-mail: intlxs@aol.com, Web site: www.intlxs.com
Millennium Insurance Group is a managing general agency providing municipal/government entity and school systems programs exclusively with Gulf Insurance for the states of AL, AR, GA, MS, NC and SC. Limits of coverages are as follows: GL $6 million; property $6 million; public officials, $9 million; law enforcement, $9 million; and umbrella $5 million.
* Contact Bob Adams, 510 B Turner Street, P.O. Box 2005
Thomasville, NC 27361, Telephone (336) 476-0010, Fax (336) 476-0018
PENCO, a wholesale broker that writes for municipalities, counties, townships, school districts, public universities, sewage, water, and irrigation districts in all states except AK, CT and HI. It uses A-rated carriers The Hartford, Coregis, and Northland Insurance. Primary liability limits of $2 million and $15 million. Excess or umbrella are available.
* Contact PENCO, Marketing Department, P.O. 30517, Nashville, TN 37230
Telephone (800) 473-6261, Fax (615) 872-3530, E-mail: info@penco.com
Web site: www.penco.com
Princeton Risk Managers. Inc., acts as an MGA for the states of NJ and PA. Among the classes of risks written are municipalities, school districts, housing authorities, ambulance districts and transit authorities. Insurance companies providing coverages are General Star, Coregis, General RE, Safety National, Interstate Insurance Group, Royal, and Fireman's Fund. Most accounts are written with primary limits of $1million/$2 million; excess or umbrella up to $50 million with larger accounts having a SIR.
* Contact Jim Griffith, 201 Wall St., Princeton, NJ 08540
Telephone (800) 582-7607, in Pennsylvania (800) 776-0099
Fax: (609) 924-8155, E-mail: prmtiger@aol.com
Professional Governmental Underwriters offers police professional liability, public officials liability, school board legal, public & educational entity umbrella and non-profit E&O, targeting populations fewer than 100,000. Unadmitted coverages are available in all states. Admitted coverages available in AL, CT, GA, KS, MA, NC, NH, NJ, NY, OH, PA, TN, TX, VA, and VT. Most programs have maximum primary of $5 million/$5 million with high limits on a facultative basis. Royal Insurance Group, United National, and Old Republic Insurance Company are A-rated carriers providing coverage.
* Contact Robert Joseph Chapman, Director of Marketing, Martin H. Kanipe, Pres.
9201 Forest Hill Ave., Ste. 201, P. O. Box 35471, Richmond, VA 23235
Telephone (800) 586-6502, Fax (804) 272-7852, E-mail: pgui@pgui.com
Web site: www.pgui.com
Roush Insurance Services is an MGA operating in IL and IN underwriting public officials, law enforcement, fire departments, school boards D&O and emergency technicians, placing limits of $5million on GL and no limit on property. Carriers are National Casualty and Tudor, both A-rated.
* Contact Gail Pierce, Sr., Casualty Underwriter, P.O. 1060
Noblesville, IN 46061, Telephone (800) 752-8402, Fax (317) 776-6891
S.H. Smith & Company is a program administrator for Gulf Insurance Company in the states of CT, MA, ME, NH, RI and VT. They also offer some coverages in WY. General liability limits of $25 million and unlimited property values are underwritten for municipalities, counties, taxing districts, fire and transit districts, and water authorities.
* Contact John Buckley, 41 N. Main Street, Ste. 300, West Hartford, CT 06127
Telephone (800) 356-0168, Fax (800) 561-3606, Web site: www.shsmith.com
SIRPRO is an MGA placing coverages with Gulf Insurance on an excess liability basis only for public entities with no restrictive classes. Liability limits are $25 million with SIRs from $25,000 and up. Coverages available in AK, AZ, CO, FL, IA, ID, IL, KS, MA, MI, MN, MO, MS, MT, NE, NM, NV, OR, UT, WA, WI and WY.
* Contact Ron Cramer or Judd Feldman, 411 E. 3rd Ave.
Eugene, OR 97401, Telephone (888) 474-7776, Fax (541) 485-3946
Kenneth I. Tobey is an MGA and surplus line broker located in Seattle, WA, with branches in Beaverton, OR, and Denver, CO. Target markets are cities and counties with populations of 20,000 and higher. Limits for GL are $20 million and property limits of $150 million. Public officials EPL, and law enforcement. Liability can be obtained with a minimum of $500,000 limits for these risks.
* Contact Derek Jenkins, 2201 6th Ave., Ste. 1500, Seattle, WA 98121
Telephone (800) 426-5008, Fax (206) 448-5507
Western States Insurance Agency offers the Gulf Insurance Public Entity program for Montana with liability limits of $5 million and unlimited property with a minimum of $250 deductible and a maximum of $100,000. All coverages for this class are written.
* Contact Derek Grewatz, 2925 Palmer, Ste. B, Missoula, MT 59801
Telephone (800) 998-0106, Fax (406) 721-9230
Yates & Associates markets in the state of California, providing GL limits of $10 million and $200,000 on property with excess limits available. No primary WC is written. Carriers are all A-rated--National Union, Coregis, Pacific Insurance, Fireman's Fund, Sable Insurance (Reliance), Alliance, Executive Risk, Employers Reinsurance.
* Contact Pat Piccinonno, 1570 Brookhollow Dr., Ste. 212, Santa Ana, CA 92715
Telephone (800) 660-1125, Fax (800) 378-8588, or
Bob Mestayer, 1776 West March Lane, Ste. 110, Stockton, CA 95207
Telephone (800) 464-7042, Fax (209) 474-7043 *
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