The Hartford introduced a new commercial property insurance program, called Property Choice, which is designed to consolidate all of the property insurance coverage of mid-sized companies under one program. It adds some coverages that previously were insured separately--including equipment breakdown, marine and crime--and provides flexible limits on many coverages.
Under business income, the policy provides a single limit that applies wherever the business property is located when the loss occurs. Thus, if a loss at one location causes loss of income at another location, the full coverage limit applies. Also, business interruption for Web sites is included.
Property Choice also includes a feature called Combined Additional Protection (CAP), which lumps together the limits on eight property damage coverages so that if a loss in one coverage--such as building and business personal property--exceeds the limits for that coverage, policyholders can recover the additional amount of loss in any combination of the CAP coverages.
Property Choice provides coverage for ordinance and law, valuable papers, equipment breakdown, computers and media, transit and accounts receivable, worldwide exhibition and business travel, tenants, and utility services.
Among the industries appropriate for the policy are auto dealers, printers, food processors and distributors, electronics and technology, communication and media, private and charter schools, metalworkers, plastics, special trade contractors, wholesalers and janitorial services.
Property Choice is available in most states.
St. Paul oil & gas CGL enhances pollution coverage
St. Paul Fire and Marine Insurance Company introduced a new commercial general liability coverage form for companies doing exploration and production of oil and gas. The new CGL form, which has been filed in 34 states, features enhanced pollution coverage.
The form provides oil and gas producers and contractors with coverage for pollution cleanup costs for sudden and accidental pollution incidents related to their oil and gas operations. This coverage applies whether the cleanup costs are incurred on a voluntary or involuntary basis.
The form also covers injury to others at the work site and damage to property resulting from sudden and accidental pollution incidents.
St. Paul's oil and gas business unit will write limits of up to $1 million under the new form. Up to $25 million in umbrella/excess coverage is available from the oil and gas business unit under a separate form.
IIAA & ERC offer new E&O policy
The Independent Insurance Agents of America and Employers Reinsurance Corporation have filed a new errors and omissions policy, called the Pinnacle Series, which features a modular-unit approach enabling agents to add various individual coverages to a set of general terms and conditions. An agent can add coverage for employee dishonesty, e-commerce, employment practices, real estate, lending, investment activities, consulting, premium finance and third-party administration.
The Pinnacle Series can be utilized by agencies of all sizes. It will be offered in three versions: Pinnacle Pro (basic), Pinnacle Plus (preferred) and Pinnacle Premier for larger agencies (which includes a profit-sharing feature).
ERC, which has provided E&O and related coverage to IIAA members since 1994, will offer the Pinnacle Series through Westport Insurance, ERC's specialty subsidiary division. It is currently available in selected states, with the remaining states scheduled for this fall.
Electronic ERC/Westport applications are available on IIAA's Web site (www.independentagent.com).
Chubb updates machinery breakdown coverage
The Chubb Group of Companies has filed a new machinery breakdown policy--ESP Select--in all 50 states. The policy is designed to dovetail with all-risk property policies and eliminate gaps in coverage.
New coverage features include:
* electronic data processing media--up to $25,000;
* extended warranties (reimbursing the insured for unused amounts of service contracts or extended warranties unusable after a loss);
* demolition and increased cost of construction (which applies when a steam explosion, mechanical breakdown or electrical arcing occurs, and the replacement cost of property is higher because of a zoning, land use, construction or installation law);
* brands and labels (reimbursement for damaged labels, capsules, wrappers or containers);
* newly acquired locations.
Under business income, the policy provides $100,000 in service interruption coverage and full business income limits for newly acquired locations.
Spoilage resulting from a covered loss is included up to $100,000 whether as a result of a loss to owned equipment or utility equipment. Ammonia contamination also is provided up to $100,000. Higher limits for both spoilage and ammonia contamination are available.
Also included is $100,000 of dependent business premises insurance for loss of income due to a machinery breakdown loss at another location that isn't owned by the customer but upon which the customer is dependent.
Policy limits are $200 million.
AIG introduces excess & commercial umbrella
American International Group introduced a policy, called Umbrella EliteSM, which provides excess follow form and commercial umbrella liability coverages. The company also introduced Excess Casualty CrisisFundSM, a policy providing Umbrella Elite policyholders with up to $25,000 coverage for the services of a public relations firm in the event of a casualty crisis covered by Umbrella Elite.
Umbrella Elite follows form to both claims-made and occurrence policies where are underwritten by any rated insurance carrier. The policy also provides:
* non-employment-related discrimination coverage including injury to reputation and vicarious liability arising out of intentional acts. (Personal injury and advertising injury definitions have been expanded to include injury arising from electronic publication.)
* follow form uninsured and underinsured motorists coverage.
Coverage under Excess Casualty CrisisFund is triggered when the insured determines that damages caused by a crisis may result in an Umbrella Elite claim and significant adverse media attention. Such a claim might result from an explosion; a major crash; contamination of food, beverage or pharmaceuticals; or other covered events that result in multiple deaths.
Both Umbrella Elite and Excess Casualty CrisisFund are offered through AIG Excess Casualty, a division of AIG.For more information contact Tracey Amster at Umbrella.Elite@aig.com
or (212) 770-3668.
Actuarial group points to likelihood of higher liability rate for SUVs
Panelists at a recent Ratemaking Seminar of the Casualty Actuarial Society provided evidence suggesting that auto liability rates will go up for the owners of sport utility vehicles (SUVs). The number of SUVs on the nation's highways has grown from 929,000 in 1990 to 2.7 million today.
Up to now, insurers have developed separate physical damage rates for coverages on SUVs, according to Jerry Rapp of the actuarial firm Miller, Rapp, Herbers & Terry; but "most insurers do not vary liability rates. Some companies--Farmers and Progressive Insurance companies--have begun to vary liability rates, while others say the data does not support it."
Kim Hazelbaker, senior vice president of the Highway Loss Data Institute, said, "As you add weight to vehicles, occupants are better protected; but there is an increase in the damage potential to other vehicles and the occupants of these other types of smaller and lighter vehicles in common types of traffic accidents."
Hazelbaker added that the problem will likely get worse because motor vehicle manufacturers are planning to market larger and heavier SUVs and trucks in the near future.
Michael C. Dubin of the Atlanta office of Milliman & Robertson, said, "Surveys show that the driving public believes SUVs have higher potential liability, and those surveys also show that the vast majority (70%) believes that SUV owners should pay more for their auto liability insurance."
Hartford has package for family recreation centers
The Hartford Financial Services Group introduced a package called the Family Fun Insurance Program which provides coverage for a variety of family-oriented recreational facilities. Bowling alleys may be covered, as well as recreational centers featuring miniature golf, video game arcades, go-karts, bumper boats, batting cages, soft modular play areas, birthday party facilities and kiddie rides.
The program includes general liability coverage--with limits of
$1 million per occurrence, $2 million aggregate; property coverage; commercial auto; workers compensation; and umbrella--with a $5 million limit. Liquor liability is available to those businesses where alcoholic beverage receipts do not exceed 25% of revenue.
Facilities that offer only go-kart tracks or batting cages are not eligible.
The Family Fun Insurance Program is available nationwide. Agents who want more information about the program may call The Hartford at: (800) 372-0413.
AIG Environmental offers owner's protective policy
AIG Environmental, a unit of American International Companies, introduced Owner's Protective Environmental Insurance, a policy covering the legal liability that project owners may face as a result of the work of hired independent contractors or engineers. It indemnifies the owner for the wrongful acts or omissions of the contractor or engineer in the performance of professional services for the owner's project.
The policy also covers damages resulting from third-party claims attributable to the engineer's wrongful acts or omissions at the covered location, or from third-party claims of bodily injury or property damage or environmental damage resulting from pollution conditions for which the contractor is legally liable.
Under the policy, independent contractors and engineers still are required to carry the appropriate levels of professional or pollution liability insurance. The Owner's Protective Environmental Insurance policy is intended to protect when the engineer's or contractor's policies are insufficient.
Owners Protective is available with limits up to $100 million. *
©COPYRIGHT: The Rough Notes Magazine, 1999