The Kemper Insurance Companies and Gulf Insurance Group, which is part of the Travelers Group, will undertake a joint venture relationship in connection with Kemper's formation of a specialty program business operation. The specialty programs to be targeted include professional liability, public entity, alternative market and property/casualty. It will be written on both Gulf and Kemper paper.
The arrangement calls for Kemper to create both a strategic business unit for underwriting and administration and--along with other insurers--a holding company. The holding company will be headed by Vickie F. Kartchner, who most recently was president of Gulf Underwriters, a subsidiary of the Gulf Insurance Group. Kartchner will be nominated for election as a senior vice president of the Kemper Insurance Companies.
All current Gulf Underwriters employees will be offered positions with the new Kemper entity.
Gulf's existing business written by the new underwriting management company will continue to be written on Gulf Insurance Group paper. New and renewal business may be written on either Gulf or Kemper paper.
The new holding company will be based in Scottsdale, Arizona, with regional offices in Chicago, Orlando and Orange County.
Golf course flood program offered
Givens & Williams, a Virginia-based program administrator, introduced a flood insurance program for golf courses in all states. The program, underwritten by Lloyd's, can be written for most coastal courses--as well as inland or mountain courses. Only four counties in Florida are excluded: Dade, Broward, Palm Beach and Monroe.
Golf course property limits are offered up to $1 million, which includes a sub-limit of $50,000 per any one hole and a $100,000 sub-limit for debris removal expense. A $25,000 deductible per occurrence applies.
Golf course property includes tees, greens, fairways and rough, hazards, cart paths, in-ground sprinkler systems, bridges, levees, trees and shrubs, driving ranges and areas between holes, excluding areas out of bounds.
Coverage for loss of greens fees and cart rental fees is available up to $50,000 per month with a $300,000 aggregate limit.
Premiums range from $2,000 to $15,000, and are based on the golf course's flood zone. Those courses which have had flood losses are considered on a case-by-case basis. Underwriters initially will write no more than five courses per any one county or parish.
Givens & Williams administers the program and handles claims through a network of golf course adjusters and architects. Commissions start at 5% and increase based on premium volume. Givens & Williams expects to have association sponsorship in place by early in the year.
For more information call Givens & Williams in Fairfax, Virginia at: (800) 320-9006.
CNA broadens recall coverage for food processors
CNA Commercial Insurance has introduced a food processors program which enables insureds to take fast preventive action on product recalls--before any government mandate is issued. The product recall feature of the food program provides up to $1million for expenses caused by the removal of products that could cause bodily injury or property damage.
"We have seen insurance policies in the marketplace which require a government recall order to trigger coverage," said Deborah Rudman, vice president of CNA Commercial Insurance. "Usually that happens only after illness or even death has occurred and been linked to the product." The broader coverage triggers in CNA's food program are designed to avert tragedy by allowing food processors to move quickly and responsibly, Rudman said.
The food program covers a variety of situations including consequential loss/spoilage coverage and business loss of income. This includes protection for losses due to electrical failure.
The program also contains coverage for commercial property, general liability, commercial auto and workers compensation.
The coverage also includes costs of communication via the Internet.
CNA also offers programs designed for specific segments of the food industry including the American Association of Meat Processors, the American Vintners Association, the Craft-Brewing Program and the Produce Industry Class Program.
Gallagher offers church program through agents
Arthur J. Gallagher is providing agents and brokers with access to a national insurance program for churches. Gallagher, which currently acts as a wholesale broker for more than 500 agents and places coverage for approximately 10,000 churches in the U.S., is forming a new division called "Church First" for this purpose.
The church insurance program, available to agents and brokers throughout the U.S., is designed for churches and schools of all sizes and denominations.
The new division, which is being formed by combining Gallagher's wholesale church operations, initially will operate out of three Gallagher sales offices which have large equity books of church business: Tulsa, Chicago and San Francisco.
Gallagher has provided religious institutions with insurance coverage and risk management services for more than 35 years.
The Hartford offers EPLI to small businesses
The Hartford Financial Services Group has added employment practices liability insurance (EPLI) to its Spectrum insurance program for small businesses. The EPLI coverage has been added at no additional cost.
The built-in EPLI coverage has a $5,000 limit per claim/$5,000 aggregate limit, with additional coverage of up to $1 million available for as little as $750 a year. Coverage may not be available in all states for all types of businesses.
Spectrum, which was first introduced almost 20 years ago, is designed for businesses with less than $5 million in sales. Its flexible design allows it to address the needs of a variety of industries, featuring insurance coverages specific to the risks inherent in each. The Hartford recently enhanced Spectrum by adding, at no charge, coverage for loss of income and mechanical breakdown.
Spectrum is available nationwide except in Hawaii and Alaska. *
©COPYRIGHT: The Rough Notes Magazine, 1999