UMBRELLASYOU CAN'T BUY THESE
ON A RAINY DAY
UMBRELLASBy Larry France.
The concept of umbrella or excess coverage is to cover against catastrophic losses above the limits provided in other insurance contracts. In some cases it includes coverages for gaps and exclusions found in the primary policy. The limits can range from $500,000 to $100 million depending on several factors including type of policy, personal or commercial.
Pricing can be as low as $150 for the first million on a personal account to thousands for large commercial accounts. The minimum premium for most commercial risks is usually $500 per million, and the premium for additional layers, or increments of $1 million coverage, may be lower due to the reduced possibility of reaching that level. Underlying limits will be required by the excess carrier on each primary policy such as auto, general liability and workers compensation. Those limits required will range from $500,000 to $1 million in most situations.
ISO has a Personal Umbrella Liability Policy, DL 98 01 (6/98) form (see Rough Notes, February 99). Commercial excess and umbrella policies are not regulated by the state Department of Insurance regarding approval of rate and form. There are almost as many different umbrella policies as companies that offer the coverage.
Umbrellas and excess policies will contain a deductible in the form of a retention level--$10,000 is standard for commercial and $250 for personal lines policies. Some larger risks that have the financial ability to sustain losses of $25,000 or $50,000 and higher may qualify for higher retentions.
Large self-insured retentions (SIRs) will not have underlying or primary policies. These clients will usually have a risk manager, claims administrator, and loss control or safety department. Some carriers may insist that the claims functions be performed by an outside source. The clients will pay claims from out-of-pocket expenses that fall below the SIR limit. Clients will have use of the funds until the occurrence happens. Then they must set up a reserve fund.
Carriers will require detailed financial information in the form of letters of credit, financial statements and other documents to verify the insider's ability to pay out incurred losses in the event of a claim. They also may require detailed incident reports to track any future possible claims that may fall into the excess level. The insured will take a more active part in loss prevention under this scenario.
Umbrellas and excess policies are similar, but there are differences between the two, so be sure that the product that you request and what the client understands is being purchased is the proper form.
A true umbrella provides additional limits of liability over another insurance contract, as does an excess policy. The umbrella will usually cover exposures not otherwise covered in the primary policy and provides replacement for existing coverages that have been exhausted or diminished by the incurred loss. The excess form will contain policy language that limits its coverage to the hazards defined in the primary policy. This is referred to as "following form excess policy."
When a market states that it has "in house" limits, this refers to the limit it is authorized to bind under the treaty agreement with its carrier. The treaty will specify to what types of risks this limit applies. It may be limited to transportation, manufacturing or entertainment exposures. The treaty also may apply only to risks where the carrier is on the primary policy. If the excess carrier will go over another company's primary policy, the underlying carrier's rating and admitted or nonadmitted status will be a consideration.
If the request is outside the treaty agreement limits or type of exposure the facultative market will need to be explored. This is equal to shopping the risk for acceptability with an excess underwriter that has no obligation to write the risk or stay with the same pricing scheme.
When the excess and umbrella markets are tight (o.k., file this for future use), buffer layer liability often is required to build up underlying limits to the attachment point of the excess coverage. In some cases the primary carrier will place only $500,000 on its policy and the excess requires $1 million.
Bumbershoot liability is a form of umbrella that is designed for accounts with a marine exposure. This includes docks, operation of vessels, and where the Longshoreman's Act is applicable. It covers protection and indemnity, general average, collision, salvage charges, sue and labor and all other contractual liability including employers liability.
D.I.C., Difference in Conditions, will provide coverage against insurable losses not covered in the standard fire and property damage policies. These include flood, quake, water damage and landslide. Although not an umbrella policy, it is an excellent companion because it provides coverage where none existed.
Selling excess and umbrella policies provides a professional service for your client, increases revenue, improves retention, and secures other lines of business. It also is a great door opener and prospecting tool.
The following listing includes information compiled from our recent survey of MGAs, excess/surplus lines brokers and insurers that have indicated they provide excess or umbrella policies.
Agency Marketing Services
P.O. Box 41786
St. Petersburg, FL 337743
Contact: Stephanie Hays, Commercial Excess/Ken O'Neil, Personal Lines
Phone: (800) 542-2805
Fax: (727) 343-4123
E-mail: shays@agencymarketing.com
An E&S broker operating in all states targeting manufacturing and habitational risks but open to all classes. General liability and products liability also are available. A rated carriers utilized are TIG, Cigna, RLI, Lexington and Acceptance. Limits will vary by risk, up to $50 million, more if qualified.
Aggressive Insurance Brokers, Inc.
Commerce Park Condominiums, 6988 Spinach Dr.
Cleveland, OH 44060
Contact: Michael Belanger or James White
Phone: (800) 246-3242
Fax: (440) 205-4601
An E&S broker operating in all states. Various A rated carriers are utilized to provide up to $25 million in limits. All classes are considered.
Arrowhead Group
140 S. Lake Ave, Ste. 208
Pasadena, CA 91101
Contact: Carole Fleischman, Donna House, or Robin Reardon
Phone: (626) 844-2464
Fax: (626) 844-2460
E-mail: rreardon@arrowheadgrp.com
An MGA operating in all states providing up to $5 million for contractor risks where they provide the primary liability. A rated Legion Insurance and Legion Indemnity are the carriers.
Atlantic Specialty Lines
9201 Forest Hill Ave., Ste. 202
Richmond, VA 23235
Contact: Underwriting Department
Phone: (800) 368-2095
Fax: (804) 320-7280
Web site: www.atlanticspecial.com
An E&S broker operating in all states providing up to $50 million in limits. Most classes are considered.
A rated carriers include U.S. Liability, Acceptance, Scottsdale, and General Star.
Baldinger Insurance Services, Ltd.
22 Village Square
New Hope, PA 18938
Contact: Sandy Baldinger, President
Phone: (800) 877-2348
Fax: (215) 862-4505
An agency operating in all states providing up to $50 million occurrence/$50 million aggregate. Target markets are real estate, artisan contractors, and restaurants all other classes are considered on an individual basis. Cigna is the A rated carrier.
Bolton & Company
1045 Starks Bldg.
Louisville, KY 40202
Contact: Greg Allgeier
Phone: (800) 292-6597
Fax: (502) 584-6131
E-mail: GAABolton@aol.com
Web site: www.BoltonMGA.com
An MGA/E&S broker operating in all states providing up to $25 million in limits. Target markets include the tire industry. Various A rated carriers are used.
Burns & Wilcox, Ltd.
30833 Northwestern Hwy.,
Ste. 220
Farmington Hills, MI 48334
Contact: Home Office for local branch
Phone: (800) 521-1918
Fax: (248) 932-9050
E-mail: email@BurnsandWilcox.com
Web site: BurnsandWilcox.com
An MGA/E&S broker operating in all states except AK, HI, ME, NJ and NY. Limits of up to $25 million are offered on commercial risks and
$50 million on personal lines. Excess auto, general liability, liquor, professional liability, private passenger auto, CPL are available. Various A rated companies are utilized.
Carnegie Insurance Services Corporation
17700 Broadway Ave.
Cleveland OH 44146
Contact: Dennis Liniman, Ext. 3211/Alan Rubin, Ext. 3206
Phone: (800) 362-2411
Fax: (440) 439-5551
E-mail: cisco@stratos.net
An MGA operating in all states offering up to $50 million in limits for personal lines with standard, preferred, surcharged, high-profile, sports and entertainment risks. Various A rated carriers are utilized.
Centurion Corporation
P.O. Box 959
Hanover, NH 07355
Contact: Thomas F. Canfield
Phone: (800) 258-3056
Fax: (603) 643-2640
E-mail: tom@centcorp.com
A broker operating in all states with limits up to $25 million. A rated carriers include Fireman's Fund, Chubb, and AIG.
Century Surety Group
2400 Corporate Exchange Dr., Ste. 290
Columbus, OH 43231
Contact: Jim Murphy
Phone: (888) 546-7077
Fax: (614) 895-7036
E-mail: jmurphy@centurysurety.com
Web site: www.centurysurety.com
An insurer operating in all states except MA, ME, NH, NY and RI, offering up to $10 million in limits. Century Surety and Evergreen National Indemnity Company are both A rated.
Charity First
P.O. Box 193944
San Francisco, CA 94119
Contact: Mike Komar
Phone: (800) 352-2761
E-mail: mike_komar@ajg.com
Web site: www.charityhfirst.com
An underwriting manager operating in all states providing limits up to $20 million for nonprofit organizations. Full limits for sexual abuse and professional liability are available in a stand-alone or package policy options. A rated carriers are Travelers and Gulf Insurance.
Colony Management Services, Inc.
9201 Forest Hill Dr., Ste. 200
Richmond, VA 23235
Contact: Matt Nichols
Phone: (800) 577-6614
Fax: (804) 327-1792
E-mail: mnichols@colonyins.com
An insurer operating in all states except DE, NH, NJ, NM and VT providing up to $5 million in limits for MGAs only. A rated Colony and Front Royal are the carriers specializing in program business, product exposures and professional liability.
Continental/Marmorstein & Malone
P.O. Box 586
Paramus, NJ 07652
Contact: Bill Malone
Phone (800) 932-0849
Fax: (201) 261-8922
An E&S broker operating in NJ and NY, offering both personal and commercial primary and excess layers. Excess auto, general liability, public entity umbrella and excess environmental liability also are available. Various A rated carriers are utilized.
Donald Gaddis Company, Inc.
150 S. Wacker Dr., Ste. 600
Chicago, IL 60606
Contact: Eric Gaddis
Phone: (312) 853-0071
Fax: (312) 853-1033
An MGA/E&S broker operating in the Midwest offering up to $20 million in limits for direct and excess lines. Various A rated carriers are used.
Doran Excess Underwriters, Inc.
P.O. Box 1417
Mechanicsburg, PA 17055
Contact: Ronald G. Hihn
Phone: (800) 553-6739
Fax: (717) 697-7506
E-mail: doranco@aol.com
An MGA operating in all states offering limits up to $25 million. All risks are considered except pollution coverage. A rated United National Group is the carrier. Professional liability, medical and non-medical also are available.
Entertainment Brokers International
10940 Wilshire Blvd., 17th Floor
Los Angeles, CA 90024
Contact: Patricia Jurecka
Phone: (310) 824-0111
Fax: (310) 824-5733
An MGA/E&S broker operating in all states offering $1 million on primary and up to $10 million on excess. Target markets are high-valued homeowners. Various carriers are utilized.
First State Management Group, Inc.
150 Federal St.
Boston, MA 02110
Contact: Don Conradi
Phone: (617) 526-7600
Fax: (617) 526-0600
Web site: www.firststateins.com
An insurer operating in all states offering up to $25 million in limits with A rated Pacific Insurance Company and Trumbull Insurance Company. Excess general liability including products, excess auto, and umbrella is offered. Target markets are contractors including wrap-up projects, OL&T risks involving hotels, apartments, stores, special events, and manufacturing classes
H.R. Keller & Company, Inc.
1520 Sheridan Dr.
Buffalo, NY 14217
Contact: John Barton/Rob Martin
Phone: (800) 424-2202
Fax: (716) 874-4920
An MGA operating in New York state. Limits and carriers will vary with the class of business. Both personal and commercial excess available.
Hull & Company
6729 Fairview Rd., Ste. E
Charlotte, NC 28210
Contact: Bob Louery, Commercial/Tim Ramsey, Personal
Phone: (800) 241-4855
Fax: (704) 365-4855
E-mail: markets@hullco.com
Web site: www.hullco.com
An MGA/E&S broker operating in NC, SC and VA, providing primary general liability and property packages with both commercial and personal umbrella policies. Limits will vary with the risk. Various A rated carriers are utilized.
Jacobs-Burke & Associates, Inc.
8221 Brecksville Rd., Bldg. 4
Brecksville, OH 44141
Contact: Jim Jacobs, Jell Burke, and Beth Jacobs
Phone: (440) 838-1870
Fax: (440) 838-0742
E-mail: jacbur@earthlink.net
An E&S broker operating in OH providing up to $10 million in limits for excess auto and watercraft. A rated Scottsdale and Mt. Vernon Fire are the carriers.
Jimcor Agencies
15 Ver Valen St.
Closter, NJ 07624
Contact: Coryn Mastowski
Phone: (800) 334-0474
Fax: (201) 784-7901
E-mail: cmastowski@jimcor.com
An MGA/E&S broker operating in the Northeast and mid-Atlantic states, providing up to $50 million in limits on all classes including professional exposures. Various A rated carriers are utilized for both personal and commercial umbrella.
L.E. Harris Agency, Inc.
P.O. Box 8330
Langley Park, MD 20787
Contact: Mark Baldwin
Phone: (301) 439-4700
Fax: (301) 439-5800
An MGA/E&S broker operating in the mid-Atlantic states, providing both personal and commercial policies. Limits up to $10 million on the lead umbrella and $10 million on excess. Various A rated carriers are utilized.
Miami Valley Excess & Surplus Agency
P.O. Box 29
Miamisburg, OH 45342
Contact: Craig Yuskewich
Phone: (800) 445-9863
Fax: (888) 438-9834
An MGA operating in IN, KY, OH, TN, VA and WV, providing up to
$10 million in limits with higher limits considered depending on the exposure. Both personal and commercial umbrellas are written, but only primary commercial is available. A rated carriers include Fireman's Fund, Century Surety, and United National.
Pennock Insurance Inc.
P.O. Box 2000
Chadds Ford, PA 19317
Contact: Cindi King
Phone: (800) 662-5182
Fax: (610) 358-3449
E-mail: mail@pennock-ins.net
An MGA operating in DC, DE, MD, NJ and PA. Limits of up to
$50 million are available. Target markets are contractors for commercial and high-profile personal risk. Various A rated carriers are utilized.
Princeton Risk Managers, Inc.
201 Wall St., Research Park
Princeton, NJ 08540
Contact: Jim Griffith
Phone: (800) 582-0267 NJ/Outside (800) PRM-0099
Fax: (609) 924-8155
E-mail:
prmtiger@aol.com
An E&S broker operating in the Northeast providing limits up to $100 million and up. Excess of SIRs, excess auto, professional and D&O, buffer liability, and excess on public entities are available. All classes of excess are considered.
A rated carriers include AIG, Chubb, Cigna, Coregis, Fireman's Fund, First Security, General Star, Genesis, Interstate, Lexington, Reliance National, and Westport.
Professional Government Underwriters, Inc.
9201 Forest Hills Ave., Ste. 201
Richmond, VA 23235
Contact: Martin Kanipe, CPCU
Phone: (800) 586-6502
Fax: (804) 272-7852
E-mail: mkanipe@pgui.com
Web site: www.pgui.com
An MGA operating in all states providing limits of up to $5 million
on public and educational entities including coverage for professional liability. A rated Old Republic Insurance Company is the carrier.
R.J. Bostick & Associates, Inc.
38029 Third St.
Willoughby, OH 44094
Contact: Robert Bostick/Jana Shippitka
Phone: (800) 969-2463
Fax: (440) 942-3363
An MGA/E&S broker operating in all states, Puerto Rico, and the Virgin Islands. All classes of business are entertained, and limits are unlimited depending on the risk. General liability, products, excess auto, and property are available. A rated carriers include General Star, CNA, Pacific, RLI, among others.
Restaurant Owners PG, Inc.
$15 million excess of primary for restaurants, white tablecloth, fast food, cafeteria, and family style. Coverage is available in 35 states. Cigna is the A rated carrier.
Petroleum Marketers PG, Inc.
$25 million excess of primary for fuel oil dealers, oil & gas distributors, and small propane dealers. Coverage is available in 47 states. TIG is the A rated carrier.
Roofing Contractors PG, Inc.
$10 million excess of primary for commercial and residential roofing contractors. Coverage is available in 36 states on an admitted and nonadmitted basis. Northland Insurance Group is the A rated carrier.
Educational Institutions PG, Inc.
$50 million excess of primary for private schools and colleges. Coverage is available in 38 states. General Star and Cigna, both A rated, are the carriers.
Professional Offices PG, Inc.
$15 million excess of primary for owner- or lessor-occupied office exposures including doctors, lawyers, accountants, engineers and insurance agents. No professional liability is included. Coverage is available in 31 states. Cigna is the A rated carrier.
Roehrig & MacDuff
100 2nd Ave. S., Ste. 601
St. Petersburg, FL 33701
Contact: Dottie Dulhagen/Sara Todd
Phone: (800) 456-6366
Fax: (727) 823-4488
An MGA operating in Florida providing up to $25 million in limits with various A rated carriers.
Roush Insurance Services, Inc.
P.O. Box 1060
Noblesville, IN 46061
Contact: Gail Pierce
Phone(800) 752-8402
Fax: (317) 776-6880
An MGA operating in Indiana
and Illinois, providing limits of up to $5 million on personal and up to
$20 million on commercial risks. Most classes can be written except for surgeons and DUIs on personal lines. Homeowners, dwelling fire, watercraft, and recreational vehicles, general liability, property, and commercial auto are available. Carriers include Scottsdale, Century Surety, and AXA Global Risks.
Russell Bond & Company, Inc.
295 Main St., 866 Elliott Square
Buffalo, NY 14203
Contact:
Jeff Latke, ASLI, Ext. 147
Claude Grabski, ASLI, Ext. 146
Geri Johnson, CPCU, Ext. 144
Phone: (800) 333-7226
Fax: (716) 856-0403
E-mail: info@rbcoin.com
Jlatke@rbcoins.com
Cgrabski@rbcoins.com
gjohnson@rbcoins
An MGA/E&S broker operating in New York providing up to $50 million in limits for contractors, preferred or distressed, and specialty personal umbrella. Primary liability is available. Carriers are U.S. Underwriters, Fireman's Fund, General Star, Gulf, Admiral, Tamarack American, Zurich, AIG, and Chubb.
S.H. Smith & Company, Inc.
41 N. Main St., Ste. 300
West Hartford, CT
Contact: John Willsey, Ext. 202
Phone: (800) 356-0168
Fax: (860) 561-6709
A program manager operating in several states depending on the specific purchasing group. Limits also will vary with each group. Umbrella only is offered.
Specialty Underwriters, Inc.
9800 Centre Pkwy., Ste. 200
Houston, TX 77036
Contact: Roland Falgoust, President
Phone: (800) 333-5785
Fax: (800 717-7550
A captive MGA of American Empire Insurance Group operating
in all states and offering up to
$25 million limits for commercial umbrella. All classes of business are considered; pollution is available on a limited basis for some. A rated carriers are Fidelity Excess & Surplus Insurance Company and American Empire Excess & Surplus Insurance Company. A "per job" policy will be considered.
Swett & Crawford Group
40 Broad St., Ste. 510
Boston, MA 02109
Contact: Art Roderick
Phone: (617) 482-4511
Fax: (617) 482-4635
E-mail: Arthur_Roderick@Swett.com
Web site: www.swett.com
An MGA/E&S broker operating in all states providing unlimited umbrella layers for commercial risks. A rated in-house authority. Primary general liability is available.
Transportation Coverage Specialists, Inc.
17 State St., 17th Floor
New York, NY 10004
Contact: Robert Fiore, VP
Phone: (212) 742-0300
Fax: (212) 742-1413
Web site: www.transcovspec.com
An MGA/E&S broker operating in all states except LA, MA and TX, offering limits of up to $50 million for trucking risks. Primary auto liability is available. A rated carriers include Cigna, General star, Zurich-American, Lexington, and American Home.
Transportation Insurance Specialists
930 S. Harbor City Blvd., Ste. 402
Melborne, FL 32901
Contact: Bob Alkire
Phone: (800) 444-8474
Fax: (407) 676-3298
E-mail:alkire@tis-ins.com
Web site: www.tis-ins.com
A broker operating in all states providing up to $50 million in excess limits. Primary auto and general liability are available. Various A rated carriers are utilized.
U.S. Risk Group, Inc.
10210 N. Central Expwy., Ste. 500
Dallas, TX 75231
Contact: Monte Stringer, VP
Phone: (800) 232-5830
Fax: (214) 265-4976
E-mail: monte@usrisk.com
Web site: www.usrisk.com
An MGA/ E&S broker operating in all states offering up to $10 million on commercial umbrella. All classes are considered. Various carriers are utilized.
United Brokers, Inc.
P.O. Box 1243
New Albany, IN 47151
Contact: Tricia Coffey
Phone: (800) 444-4824
Fax: (812) 949-4015
E-mail: tricia@ubinc.com
An MGA operating in all states offering up to $15 million on commercial umbrella. General liability, property, and commercial auto are available. U.S. Liability is the A rated carrier.
United Capitol Insurance Company
400 Perimeter Center Terrace, Ste. 345
Atlanta, GA 30346
Contact: Laura M. Wolfe, Ext. 3970
Phone: (800) 355-9429
Fax: (770) 399-6113
Web site:www.unitedcapitolins.com
An insurance company operating in all states offering up to $10 million excess over primary policies written with United Capitol. Target markets are environmental risks; no OL&T or frequency risks. United Capitol is an A rated nonadmitted in all states. *
©COPYRIGHT: The Rough Notes Magazine, 1999